How to Lower Your Private Student Loan Payments
As student loans only continue to grow many borrowers are searching for ways to lower their monthly student loan payment. So how you lower your student loan payments? To do this, first borrowers must understand the law of student loans. Students loans come in two forms: federal student loans and private student loans. Federal student loans are highly regulated under federal student law and monthly payments are controlled by repayment laws. Through a website, borrowers can obtain access to an electronic request form that can be used for the Income-Based Repayment (IBR), Pay As You Earn, or Income-Contingent Repayment (ICR) plans.
Private student loans are also regulated by law, but in the worst way. Private student loans are ineligible for federal bankruptcy so private lenders do very little to help borrowers in need. This means ALL of the above monthly federal repayment programs are nonexistent for private student loans. They will not do a loan modification, and as long as they are paid on time they will not be making any concessions. The only relief from private student loans is currently debt settlement. Debt settlement performed by a highly qualified debt settlement attorney results in a principal balance reduction of the original loan amount. Because there is a principal balance reduction, less money is paid back over time which can result in lower payments. Consult a debt settlement attorney today if you are burdened by private student loan payments.