With the American economy in turmoil it seems that more and more Americans are facing struggling with an inability to pay off their unsecured debts including student loans for themselves or their children. While most people are aware of the potential benefits of seeking a loan modification for their home mortgage, most people do not realize that the same relief may be available for their Student Loans. As Loss Mitigation Professionals it is OUR job to EDUCATE our clients!!!
Similar to property secured loan modifications, lenders are often willing to reduce a borrower’s monthly payment using a number of different methods including reducing their interest rate, lengthening the term of the loan, allowing for interest only payments for a predetermined period, and delaying payment of past due amount to the end of the term of the commercial loan. In the case of a student loan, because it is a no recourse loan, the lender may be more willing to negotiate because there is no collateral security to repossess.
What About Temporary Payment Suspension? There may be times when even an affordable repayment plan is too much for a borrower. They may be temporarily unemployed or unable to deal with student loan payments for other reasons, such as active duty military service. The good news is that they can suspend their payments, at least for a while, in limited circumstances. The bad news is that in many cases, your interest will continue to accrue, and will be added to your principal when you begin repaying again. This is a common way that loan amounts can grow to unmanageable levels. Borrowers who need deferments and forbearances may be less able to pay back an even larger loan, and find themselves worse off at the end of a break in repayment than before. PCAG will negotiate with your lender on the accrued interest so you are not stuck in a never ending loan.
The first category of suspensions, grace periods, automatically comes with most loan programs. Lenders will give a borrower a break so that they don’t have to start repaying right after graduation or withdrawal from a school.
The second category, deferments, are available if a borrower meet certain conditions, such as unemployment or economic hardship, and only if they are not yet in default on your loans. The Borrower will not be charged interest on subsidized loans during a deferment period.
Forbearances also allow you to suspend payments and are available even if you are in default, but you will be charged interest during forbearance. Student Loans & Bankruptcy: Student loans are not usually discharged in bankruptcy. It is common for a borrower to go revolving 90 days late with their loan.. BUT IT IS SIMPLY NOT NECESSARY!
No matter what the state of a client’s finances, there are positive solutions for both you and your lender. PCAG will explain to them right up front what your situation is and how you believe that things can be worked out so that everyone will benefit.
As a Loss Mitigation Specialist it is your job to show the client that by aggressively taking matters into their own hands, creditors will know that they mean business and are motivated to seek remedy. Yes, asking creditors to simply forgive some of their debt is always one option and is a good starting point when negotiating a student loan. But clients should not expect your creditors to roll-over, however! Our experienced negotiators will show them that the borrower does expect some action.
WE ARE NOT A DEBT CONSOLIDATION FIRM!!! WE ARE PROFESSIONAL NEGOTIATORS AND ATTORNEYS SPECIALIZING IN LOSS MITIGATION!
When your client’s monthly bills become too much to handle, it makes sense to use a professional team for solving debt and credit problems. If bills and other heavy payments are bogging them down, show them the need to take action sooner than later to find solutions to the problem. Continued financial stress and burden can ruin everything in its path, not to mention permanently damaging a borrower’s credit. If a student loan is at the heart of the problem, PCAG will negotiate that burden away and provide a stable financial outcome you the client can live with!
PCAG is able to Negotiate the following types of Student Loans……
Canada student loans……