Given the rising cost of education all around, taking out student loans to fund college education has become common practice. This has also led to rising amounts of student loan debt. Now, if you’re one carrying the burden of student loan debt, then it’s not at all surprising. Now, what should be your foremost concern is to repay this student loan debt as fast as possible. Amongst all other practices of student loan debt relief, there’s also student loan debt settlement.
Instruction to help you settle your student loan debt
Basically settling student debt is challenging as compared to settling other forms of private debt. This is essentially because of the special protections afforded to student loans as per federal legislations. Moreover, as per law you can’t discharge of your student loan through bankruptcy either. Despite all this, there are private lenders who’re willing to settle your student debt for less than the total amount that you owed. Here are a few instructions that’ll help you settle your student debt –
1. Contact your lender: The first thing you should do is get in touch with your lender and talk it out about your student loan debt. There are high chances that you won’t be able to settle your debt unless and until you’re delinquent or in collection. Hence, in such a case try and secure an agreement wherein your principal stands reduced or at least the rate of interest. The idea is to present a reasonable offer to the lender.
2. Request necessary documents: When you get in touch with your lender to make the initial settlement offer, you should request for the agreement to be mailed to you in writing for you to put your signatures on. Also, you might want to request your lender to stop all attempts to collect on the debt now that you’re entering into a settlement agreement. Also, do verify the fact that there’s a clear deadline by which you’re required to send in your payment.
3. Scrutinize the agreement: Now, once you’ve got the agreement in writing in your hands, make sure that you go through it carefully before putting your signature on it. Moreover, you should take care of the fact that you send payment as requested before the contractual deadline elapses. By no means should you miss it.
4. Review your credit report: Make sure that you review your credit report and that too from the 3 major credit bureaus namely Experian, TransUnion and Equifax. You can access your credit report from their respective websites. This is important for only then can you be sure of the fact that your debt has been marked as settled. Also, ensure the fact that you receive confirmation from your lender after you’ve provided the student loan debt settlement payment.
Keep in mind the 4 instructions discussed above and settle your student loan debt without any unnecessary financial hassles. Settlement is something that requires you to be very careful and these instructions guide you accordingly.
For more information visit http://www.ovlg.com/debt-settlement/.