How to get rid of my student loan debt? This seems to be one of the most frequently asked questions of recently graduated students across the United States. It seems that a huge portion of them are knee-deep in student loan debts and hence they seek for ways to get out of the hole.
How to Get Rid Of My Student Loan Debt
Getting rid of your student loan debt is possible, but it can be a very long tedious process. So it is very important that before you embark on such a journey, you should be prepared and ready for what comes with it.
What is debt settlement? Debt settlement simply put is a financial process where people get to work out an agreement with a lender in discharging the remaining balance of their debts in exchange for a partial payment. The lender essentially agrees to settle your debts in question usually or less than the complete amount that is owed.
With all of that being said, I will be sharing with you some really important steps needed to get rid of your student loan debts. And to get these tips, you will have to continue reading the content of this post.
Know Your Terms First
It is very essential and important that you know and also understands the terms of your private student loan. You will need to know your lender, the contact details, the balance of the loan in question, and also the repayment status for each loan that you have. This can really be tough and hectic, and most especially in the event that you get a different private student loan through each year of school, you could at the end of the day end up with 4 or 5 different loans and lenders.
If in the event you have Federal student loans, then keeping track is easy. You can simply access the National Student Loan Data System here
However, if you have private student loans on the other hand, then you have to track down your lender from your credit report. You can get one free credit report per annun at AnnualCreditReport.com. And on your report, you should have all of your loans listed with the name of the lender as well as contact information. You can then use that very information in contacting your lender and then get your address updated to receive statements.
Attempt to Negotiating With Your Bank
Secondly, if it is that you really cannot afford your payments, then you should always attempt to negotiate with your bank. This can be tough simply because banks know that private student loans cannot be easily discharged, so they will very much likely always get their money back. The main aim of your contacting them should be to find a win-win situation for both of you.
The bank in question, they are in business simply to make money. They make money just by collecting on your loan and then making new loans. So, if you don’t get to pay, they don’t make money. They, however, know that they will always be paid (they can wait it out, and then file for wage garnishments, and even more). But the longer that they get to wait then the more paperwork they have to do, and then the more expensive it becomes.
In most cases, they will make a very small change to your loan such as lower payment, or longer terms, that is, if it means that they will be repaid quicker or even cheaper. So, if it is that you need a reduced payment, just ask and then you might get it granted.
Try Earning Extra Income
Finally, if you have tried negotiating and you are still struggling, then you have to focus on the other side of the financial equation which is income. You simply need more income and that’s it. There are many ways that you can use in boosting your income and they are working extra shifts at work, or simply getting a part-time job, to simply side hustling on your own end.
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