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When someone falls behind on student loan payments, first things that many student loan borrowers ask are… What are my options? How can I make a payment? How can I defer my payments? How can I make the least amount of payment? And etc… Well today I will go over the LEAST talked about topic. The topic that many borrower counselors or even debt settlement agencies will not discuss. Why you should settle out on your defaulted federal student loan. I will pull back the curtains and go over all of the details about settlements on defaulted federal student loans. And why you should settle out… if it is possible.
“Debt and Lies are generally MIXED together” – Francois Rabelais
Why should I settle my Defaulted Student Loans?
- Settlement is ONLY available while your defaulted student loan is in collections
- Fix Credit – a good credit score is now used for EVERYTHING. Buying a house, buying a new car, car insurance, health insurance, a place to rent and etc.
- Job Placement - With the economy the way it is…. if you are looking for a new job… your employer is going to weigh in your credit score, do you want your future to be left up to chance?
- STOP wage garnishment – If you have received a letter stating that you will be garnished because of your defaulted federal student loan. If you are in negotiations for a settlement… this will stop the garnishment temporarily. If you settle out completely… it will be stopped permanently.
- STOP Tax Offsets - You can get your tax return back if you negotiate a settlement prior to you filing your tax return. This can sometimes offset “what you pay” meaning – if your accountant or CPA says your tax return is $3,200 and you negotiated a settlement for $2,500. You are UP $700.
- Go Back to School or CO-Sign: If you are looking to go back to school you will not be able to access any other financial assistance OR if you are looking to co-sign for your kids… you will be denied!
Watch this video NOW!
***Curious about the PROS and CONS of each option?***
Obviously the purpose of a settlement is so you can get your defaulted federal student loans paid off, without having to pay the entire thing. So basically, it’s a partial pay-off. As mentioned everywhere there are 3 settlement options available to you as soon as your federal student loans fall into default.
Option #1 Principle and Interest
In my opinion there is absolutely NO BENEFIT going with this option. As a matter of fact, I think this option is ridiculously stupid and it’s only available for collectors to take advantage of people that are unaware of their options to have them pay MORE than what they really need to pay!
Option #2 Principle and 50% interest
This option for settlement works especially well for individuals who racked up a great deal of interest. Regardless of how much you owe in interest, this option will cut your interest in half. Basically meaning if you racked up 10 years worth of interest, this option will allow you to pay-off your loan(s) by paying back your principle and 5 years worth of interest.
Option #3 90% of Principle and Interest
This last option allows you to pay back 90% of your loan’s combined principle and interest otherwise known as a 10% discount. This option works especially well for individuals who don’t owe a significant amount of interest. For example if have a defaulted federal student loan and you owed a $25,000 principle plus $2,000 in interest. That gives you a combined principle and interest of $27,000 ($25,000+$2,000). Now take 10% off of $27,000 and that gives you a settlement pay-off in the amount of $24,300, which is $700 LESS than the principle!
MR. KAY’S NOTES: If you have a 401(k), 403(b), TSA, IRA, HELOC (Home Equity Line of Credit), a 2nd mortgage, Life Insurance (w/ Cash Value), Credit Cards, mutual funds, and etc… you should leverage those accounts to pay down your liabilities..
If you have any further question – Leave a comment below.
Sincerely,
Mr. Kay Production Manager
Rogue Student Loan Collector
The Confessions of a Student Loan Collectors – Visit: www.FreeStudentLoanStuff.com to get the most shocking truth about defaulted student loans.
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Why should you listen to me?
- I am a Production Manager for a top ranked federal student-loan collection agency who is contracted with Department of Education. Our firm’s job is to basically locate and recover billions of dollars in defaulted federal student loans.
- My team has collected well over 7 Billion dollars from doctors, single mothers, college students, veterans, people of disability, unemployed and anyone who is behind on federal student loans. I have developed a powerful unique course that exposes every tactic that I have used to collect hundreds of millions from unaware student loan borrowers just like you.
Why am I releasing this information?
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by Mr. Kay - Student Loan Collector
Your Thoughtsby February 10, 2010
