Advice needed on negotiating repayment
Date: Thu, 05/07/2009 - 00:15
Advice needed on negotiating repayment
I've decided to try to get to grips with my student loans, finally. It's been impossible before due to my precarious financial situation, but now I feel I've reached an even keel (ironically given that the economy is in the tank). But I need some advice on how to deal with the lenders.
My specific situation is as follows: I graduated over 12 years ago, so my loans are in deep default and almost half of the 60,000 I owe is interest. I also live outside the US - so, it is highly likely that if I wanted to I could continue to simply not get in touch and I would never hear from them, and they wouldn't be able to find me, much less get their money. But I want to do the right thing and get this monkey off my back. I'm just pointing out that that's my leverage.
Question: How much can I expect to get them to cut the accrued interest in return for agreeing to come in from the cold and start paying? I have just settled my Perkins loan, which was only 3,200 (original loan was 1300) by offering a lump sum of 2,500 (thanks to the generosity of a group of friends), but it felt afterwards as if they probably would have gone lower given that they theoretically face the choice of accepting my offer or getting nothing since if I managed to stay off the radar for 12 years, I'm likely to be able to do it for another 12 or 112.
Anyone have any experience of this?
My specific situation is as follows: I graduated over 12 years ago, so my loans are in deep default and almost half of the 60,000 I owe is interest. I also live outside the US - so, it is highly likely that if I wanted to I could continue to simply not get in touch and I would never hear from them, and they wouldn't be able to find me, much less get their money. But I want to do the right thing and get this monkey off my back. I'm just pointing out that that's my leverage.
Question: How much can I expect to get them to cut the accrued interest in return for agreeing to come in from the cold and start paying? I have just settled my Perkins loan, which was only 3,200 (original loan was 1300) by offering a lump sum of 2,500 (thanks to the generosity of a group of friends), but it felt afterwards as if they probably would have gone lower given that they theoretically face the choice of accepting my offer or getting nothing since if I managed to stay off the radar for 12 years, I'm likely to be able to do it for another 12 or 112.
Anyone have any experience of this?
no experience but i am a student debtor also..have you tried reh
no experience but i am a student debtor also..have you tried rehabbing your loans? that could get the default status off your loan if you made (i believe) 9 consecutive on time payments through dept of ed. you should be able to get an income continguent plan or payments based upon your income....i never knew student loans would settle for less than payments+interests..good for you..best of luck..
