Private Student Loan Lenders Silently Slash Debt But You Don't Know It
Posted December 17, 2015
Dealing with student loans can be a frightening process. Not only is student loan debt exploding but there is a significant amount of concern that many students were misled and lied to by schools willing to sell butts into seats with nearly almost any misrepresentation. This concern has been especially true at many for-profit schools funded by both federal and private loans.
For federal student loans the Department of Education has offered programs to help make payments more affordable. A look at those programs can be found here. But even those programs are not wonderful despite the often reduced monthly payments. Those income based repayment programs can be a financially hazardous trap if you just jump in. More about that here.
Private student loan lenders and holders have be particularly problematic. They passed out loans like candy and built balances that will never be repaid by the majority of people who never graduated and those who received some diploma. Yes, most people with student loan debt never graduate from school.
When people call their private student loan servicer they are told there are few, if any payment options to make the loans more affordable. The general reaction is "too bad" or they offer people who already can't afford their loans, a payment holiday which only inflates the balance due to make the future payments less affordable.
People have felt helpless when it comes to their private student loan lenders. But all lenders are not the same. Take Navient for example, while the general line by Navient will be there isn't much they can or will do to make the private loans more affordable, the reality is they do settle private student loans for much less than owed if you know who to talk to. If you have a Navient private student loan you should read This is How You Can Settle Your Navient Student Loan.
So on the front end, consumers with private loans are being told there is nothing that can be done to help with the massive loans that were passed out. But the secret is, that's just not true. Previously I wrote the article These Private Student Loans Can Be Easily Discharged in Bankruptcy. It shows exactly how and why some private student loans can be swept away in short order.
To read the rest of this article, click here.