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Is There an Alternative to Payment in Full for Private Student Loans?

by | Jun 25, 2013 | Debt Settlement, Student Loan Debt

According to the Consumer Financial Protection Bureau, there is approximately $1 trillion of student loan debt in the United States.  Privately funded student loans make up $150 billion of this burden.  Making matters worse, private student loan debt is nearly impossible to discharge in a bankruptcy.  This is because the current standard to include a private student loan in a Chapter 7 bankruptcy is “undue hardship.”  The level for this standard is quite high, with court cases allowing the discharge of this debt where a young person was severely and permanently disabled.  Consequently, many young people who are employed and healthy are stuck with student loan payments they cannot keep up with.

https://www.businessinsider.com/depressing-student-loan-stories-2013-5?op=1

Debt settlement done by a qualified debt settlement attorney is currently only way the majority of young people burdened by private student loans can pay less than the full amount owed.  Debt settlement done by a qualified attorney results in a reduction of the principal balance owed on the debt, making repayment in full a possibility.  Contact a qualified debt settlement attorney if you or someone you know, can no longer afford their private student loan payments. 

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Kevin Fallon McCarthy

Kevin Fallon McCarthy is the McCarthy Law PLC’s managing attorney and an experienced Phoenix debt attorney. Mr. McCarthy has also worked as general counsel for a large corporation. He has corporate counsel experience in human resource matters, general corporate governance, and union class action litigation.