Wednesday, July 17, 2024

Hiring a Professional Negotiator for Private Student Loan Default


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While you can initiate a settlement offer on your own, you will get better results by hiring a professional negotiator. A good rule of thumb is to start with a lower offer than you actually intend to settle for. Hiring a professional like MyCreditCounselor will help you avoid issues that may arise after the settlement has been completed. For example, you may not be aware that you have a balance that is still being collected, or the collection agency will refuse to honor a settlement that you had agreed upon. A professional negotiator can prevent these issues by providing proper documentation to the collection agency.


Navient is one of the many companies that negotiate private student loan defaults. If you’ve fallen behind on your payments, Navient will contact you and your cosigner, as well as your employer or school, to work out a settlement that is reasonable for you. These settlements typically involve a one-time large payment within thirty days or fixed monthly payments for no more than 60 months.

However, this method may not be effective if you have a cosigner who is unable to make the monthly payments. Navient’s process involves evaluating your credit score and ability to repay the loan. The loan must be current, and it cannot have gone more than 15 days past due in the previous 12 months. Additionally, the borrower must have made at least 12 consecutive on-time principal and interest payments.

Andrew Weber

Andrew Weber is a certified student loan counselor and a professional negotiator for students in default. He has been helping borrowers in trouble since 2012 and has negotiated settlements for unsecured debts worth more than 7 figures. He has helped hundreds of borrowers to resolve their debt issues.

Student loans are notoriously difficult to manage. While the government runs student loan programs, they do not have a comprehensive strategy or plan to help prevent defaults. The Department of Education has also received many complaints about student loan servicers, which has led the Consumer Financial Protection Bureau to regulate these companies. Unfortunately, some of these companies use misleading tactics to convince consumers that their services are the best way to resolve their debts.

Discretionary Compromise

The Department of Education can grant private student loan defaultors a discretionary compromise by removing up to 10% of their outstanding balance. This would be transformative, and it would stop student loan servicers from abusing their authority to extract unnecessary payments and fees. But a discretionary compromise would not be granted to every borrower. A student must prove hardship to qualify for the program.

The Department of Education does not provide much information about these compromises, but it does outline some guidelines for the process. First, a borrower must be unable to pay the federal student loans. In order to establish this, the government looks at their income, inheritance prospects, and assets. They also examine whether they have transferred assets or concealed them from creditors. In addition, the debt collector may consider any cash they have set aside for a compromise.

Getting an Offer From a Professional Negotiator

If you have fallen behind on your student loans, a settlement offer can help you catch up on payments and avoid the consequences of a default. While it is possible to initiate your own settlement offer, it is best to hire a professional negotiator. They will be able to negotiate on your behalf, which is advantageous for both parties.

Oftentimes, a settlement will involve the release of a cosigner. This process is lengthy and can take from a few months to several years, depending on the lender. The good news is that a successful settlement can result in a consolidated payment that can be used to pay off the loans once the new total is reached.

Reactivating SOL After Defaulting on a Student Loan

If you are behind on your private student loans, you may be able to get back on track by reactivating your SOL. Federal law now allows borrowers who have defaulted on their loans to seek rehabilitation from their default. While private lenders are not required to offer rehabilitation, they can try to work with you on a repayment plan or student loan settlement.

Under the Fair Credit Reporting Act, you may be eligible to get your private student loan default removed after successfully completing a loan rehabilitation program. However, this option is available only once per private student loan.


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