Will Private Student Loans Be Forgiven

Will private student loans ever be forgiven? At the moment, there are over 45 million students in the US with a combined total of $1.58 trillion deep in student loan debt. And to say that we have a crisis currently on students loan, that would be a huge understatement.

Will Private Student Loans Be Forgiven

Will Private Student Loans Be Forgiven

With all of the recent talks about student loan forgiveness, every borrower in the United States is at the moment wondering if they get to wipe clean their slates. Well, you will have to continue reading to find out about that.

Talking about wiping student loan slates clean, what about private students loan? Can those types of loans really be forgiven? But just before you get too invested in the idea of your debt disappearing totally, it is wise for you to know that private student loan forgiveness really isn’t a thing. But even at that, you should continue reading to find out how you can really get rid of your private student loan, if you can, without having to wait on someone else to do it for you.

Private and Federal Students Loan – The Difference

Before talking about how you can settle your student loan, it is firstly important to note that not all student loans are created equal. Yes, both federal student loans and private student loans borrow money to students to pay for college, but one thing you should know is that they work quite differently.

Federal student loans as you know are funded by the U.S department of Education, that is, the government, while private loans on the other hand come from a credit union, bank, state loan agency, or a private financial institution. There are even companies that are dedicated to giving out private student loans such as Earnest, Ascent, and Sallie Mae.

In order to get federal student loans, you will have to fill out the free application for federal student aid (FAFSA).

Private student loans on the other hand as you should know are treated more like personal loans. The lender in question will first look at your credit score and history to make a decision on whether or not to loan you the money you are looking for, or if it is that you need a cosigner which in many cases is never a good idea. But realistically, it just takes a college acceptance letter for private firms to lend money to an 18-year-old and then set them up for lifetime payments. Because as you should know, freshmen are regarded as fresh meat for these loan sharks in question.

Can Private Student Loans Be Forgiven

Technically speaking, the answer to the above question is YES! Realistically speaking on the other hand in that regard, the answer is NO!

Since private student loans are not controlled by the government, lenders and borrowers do not have the same type of protection that they normally do with federal student loans. And while private loan givers may have the power to easily forgive student loans, they are normally not going to let your student loans off the hook, well, at least not by choice.

There have been a couple of very small cases such as the Navient settlement where private student loans were canceled. But one thing you should know is that it is really rare and it just affects a small percentage of student loan borrowers and under very specific circumstances. And it took over 35 states suing Navient for them to agree to cancel some of the private student loans.

How to Get Rid Of Your Private Student Loans

Student loans may feel quite overwhelming. And just like you, we want them gone. But you should know that there are tons of student loan forgiveness scams out there looking for desperate people to prey on. So instead of just crossing your fingers and then waiting for someone else to help take care of your student loan debt, why not take matters into your very own hands?

With that being said, here are a couple of ways to help you get rid of your private student loans;

Follow the Debt Snowball Method

The debt snowball method is a total game changer for paying off your private student loans. This is the fastest way to pay off your student loan debt, especially in the event you have got multiple private student loans, and here is how it works.

List all of your debts from the smallest to the biggest. Next, you will continue to make minimum payments on all of your debts except for the smallest on the list. You will also need to throw as much extra cash at your small debt as you can until it is gone.

Then, you will have to take whatever it is you were paying toward that debt and then put it toward the next smallest debt, continue, and then repeat. The more you get to pay off, the more money you have to attack your debt directly, just like a snowball rolling downhill.

Use the Student Loan Payoff Calculator

If you don’t want to spend the next 20 years of your life paying off your student loans as it is what the lenders want as it means more money for them, then you should try this out. If you bump up your payment even if it is just an extra $100 more on a monthly basis, you would be surprised as to how fast you can get out of debt. There are lots of student loan payoff calculators you can try online for free.

That’s all about getting rid of your private student loans. Other methods to try out include considering refinancing your student loans and even taking a student loan debt course.



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