Is It Possible to Negotiate Student Loans?

is it possible to negotiate a student loanIs it possible to negotiate student loans? 

It depends... There are basically two types of student loans:

  • Government Loans
  • Private Loans

There are several types of government loans, but for the most part, these cannot be negotiated.

That doesn't mean you shouldn't try! 

Besides having several repayment options, it may be possible to offer a reduced LUMP SUM PAYOFF of 50%-75% of your balance and pay off your student loan at a reduced amount.

Since most deferment or repayment plans are based on your financial situation, you should gather as much information about yourself as possible before making the calls. In order to  have a chance of negotiating a lower lump sum payoff, you must show that you are in struggling financially.

Start with a basic budget that shows your assets vs. your liabilities.

is it possible to negotiate a student loan

Again, if you do not have approximately 50% -75% of the balance due, you are probably wasting your time trying to negotiate a federal student loan.  However, budgeting will help you make a plan to save for that negotiation in the future.

You may be able to negotiate a PRIVATE student loan for less!

If you have a PRIVATE STUDENT LOAN from a bank, credit union or other private lending source, you have a VERY GOOD CHANCE of negotiating the loan!

Again, gather all of your financial information BEFORE you make the call.  When you call, explain your HARDSHIP and SITUATION and then ask the agent how much they would be able to reduce the balance if you were to pay in a lump sum right away.

LET THEM GIVE THE NUMBER FIRST!  It may be a lot less than you were willing to pay, so don't offer any amount!

Debt negotiation is not always easy for first timers, so you may want to get some advice or counseling before your call.

If you are successful in negotiating a lower amount, MAKE SURE TO GET IT IN WRITING!

Too many people have sent payments or authorized a check-by-phone debit after speaking with an agent and find out later that the company had NO KNOWLEDGE OF THE CONVERSATION!

Debt negotiation takes a lot of time and patience. 

If you would like help, click here for a FREE REVEIW.

Tags: debt forgiveness, student loan forgiveness, debt negotiaion