Or if you combine your Parent PLUS loans with your own federal student loans, you may suddenly become ineligible for some of the most beneficial student loan forgiveness and repayment programs.
If you’re thinking about consolidating your federal student loans through the federal Direct consolidation program, there are potentially many benefits: streamlined repayment (one combined loan, one servicer, one monthly bill); simplified interest (if you are converting variable-rate loans to the fixed, weighted-average interest rate provided by the Direct consolidation program); default resolution if you are including defaulted federal student loans in the consolidation; and conversion to the Direct loan program through which you can access some additional student loan forgiveness and repayment programs.
In order to get a lender to actually negotiate reduced payments and/or a reduced principal balance, typically the borrower has convince the lender of two things: There are many different approaches to settle student loans and results are IN NO WAY guaranteed.
Debt settlement companies help borrowers understand what lenders typically require to settle and often use the leverage of having many clients who want to settle and then settle in bulk to get the best deal for their clients.
Student loans are now the second largest source of debt in America after mortgages, and they’re an infinite source of financial stress for the borrowers who hold them.
But there are better ways to pay back what your student loan debt if you know where to look.