Student Loans

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  • Can a student loan be included in the debt settlement program???
  • My son has student loan and has failed back on some of his payment.  Can he sign up for this program.

    Concern Mother

  • Good morning.

     

    Unfortunately, we typically do not receive any benefits from those types of lenders and cannot be added to the Debt Settlement Plan. A lot of this has to do with the historically low rates that Student Loans receive. On the Debt Management Plan we will act strictly as a third party payer which means the creditor still expects the normal minimum monthly payment. Here is a previous post with some repayment options.

    There may be other options as well:

    Deferment:
    The temporary postponement of loan payments. During a deferment period, interest is not charged on Direct Subsidized Loans, but it is charged on Direct Unsubsidized Loans. The borrower has the option to pay the interest or have it capitalized.

     

    Forbearance:
    An arrangement to postpone or reduce a borrower's monthly payment amount for a limited and specified period. Interest is charged during a forbearance period, regardless of the loan type.

     

    If you have multiple loans you can contact an organization who will consolidate them into a new loan. Most usually provide a six month hiatus from making payments and you may be able to defer them again based on the new lenders policies.

     

    Most financial experts recommend Federal Direct Consolidation Loan program and few well known banks: Chase, NextStudent, Student Loan Network, and Wells Fargo

    Also check out, "Simple Strategies to pay for College" in our article library.

    Thanks

    Coach Tammy

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