There are many personal and professional reasons you might be in trouble with your private student loan debt, from illness to job loss to unexpected expenses. But you’re not alone if you’re having problems making regular, timely payments. If you’re considering whether to negotiate or settle private student loan debt in San Diego, it’s important to understand your options. Here’s what you need to know before starting the process.
Settling Student Loan Debt
Make sure the private student loan debt is valid: With some loans, the company attempting to collect may not be the actual owner of the account. Some bad debts are sold and resold over time, so it can be difficult to determine who has control over the loan. Therefore, you should never admit to owing any amount; rather, request –in writing – that the company prove the debt is valid. There’s a possibility that the company cannot even provide the proper documentation necessary to collect on the loan.
Look into hardship options: The lender on your private student loan may consider settling with you if you’re able to prove that a certain hardship is the cause of your inability to pay. Options such as forbearance, postponements, payment reduction or interest rate reduction may be available to you, depending on your situation. You’ll be required to provide documentary and other evidence to support your claim, so be prepared to prove your case.
Let the lenders take the lead: When you do decide to approach the lender of your private student loan, don’t mention a certain dollar amount you want to pay: Request that the company make the first offer to settle your private student loan. Then, you can counter it with a lower amount that’s suitable for your financial condition. Eventually, you should be able to meet in the middle to resolve the debt.
Insist upon a written agreement: If you are able to reach a settlement for your private student loan debt, you must obtain a “Paid In Full” statement from the lender or collection company. You might even choose to have an attorney review the document and agreement terms before entering into the settlement. The paperwork must establish that your fulfillment of the agreement will cause the debt to be considered fully paid. You can use the writing later if the debt should reappear for some reason.
Consider the statute of limitations: This term refers to the amount of time a creditor has to sue you over a bad debt; in California, this time period is seven years. If the statute has expired, the lender or collector cannot legally bring a lawsuit against you – but they still may threaten or try to do so. Keep in mind that there are certain events that may suspend the statute of limitations, as well.
Student Loan Debt In San Diego
Settling your student loan debt in San Diego can be complicated, depending on your unique circumstances. There are many factors that a private lender will take into consideration when making the determination on whether to work with you. While you can settle your student loan debt on your own, consulting with an experienced debt settlement attorney could wind up saving you thousands of dollars. Call Gamez Law Firm or fill out a contact form for a FREE consultation to discuss your private student loan debt options.