It is a fact that most students who pursue higher studies have a student loan to repay. Over a period of time, this debt liability becomes burdensome and you desperately look for ways and means to get rid of this debt. As is known to all, student loans are unsecured loans and the only assurance is the repayment guarantee you make.
Please remember that federal and personal student loans cannot, as a rule, be wiped out in bankruptcy except if you suffer from some permanent disability or encounter extraordinary financial hardship. This obviously means that even if you file for bankruptcy, you will still have to settle your student loans.
If you run into serious problems for repaying the loan, it is prudent to opt for some sort of debt settlement. Of course, student loan debt settlement is a cumbersome process. Hence, it may be worthwhile to acquaint yourself about some useful and well-considered tips regarding how to settle the debt.
Before hastily attempting to settle the student loan debt, you should ascertain if there are any possibilities of getting the total loan liability annulled or written off.
In fact, there are some ways of getting the debt cancelled - either fully or partially - for people who are holding certain types of government jobs or serving in some select social sector establishments.
There are quite a few voluntary services agencies that help you with student loan forgiveness programs based on the time you spare for voluntary work. You should also examine the options with the Federal Student Loan Repayment Programs to see what relief you can get. There are also schemes that permit a more lenient restructuring of debt settlement and chances are you may qualify for one of them. You can also take the help of any legal attorney regarding this matter.
There are instances when the borrower has through protracted negotiations got the debt amount reduced up to 30 percent in a settlement offer. Many lenders even come forward to waive the interest element if you are willing for a spot repayment of the principal amount.
Some student loan debt settlement professionals may charge exorbitant fees. If you do not succeed in locating a proper agency to deal with student debt settlement for a reasonable fee, you might as well conduct the negotiations yourself. You can persuade a lender to sympathetically consider certain adjustments like having late fees waived and interest rates reduced or allowing you extra time to settle the debt.
Everything said, successful student loan debt settlement can buy you mental peace and allow you to more constructively pursue your future plans.