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Heartburn
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Joined: 04 Oct 2001
Posts: 6421
Location: The Titanic that is the USA
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 Posted: Wed Aug 07, 2024 1:29 pm Post subject: Student Loan Negotiation |
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Has anyone successfully negotiated out a reduction on a (private) student loan balance? Here's what I'm thinking. Let's say a borrower owes $50 in student loans. The task is to see if the servicer will accept $15 or some other sum less than $50 to wipe out the entire balance. The rationale is they get to recoup some of their past-due balance from a borrower who is totally willing to go into absolute default.
It's a short-sale in the private student loan market.
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You are under no obligation to remain the same person you were a year ago, a month ago, or even a day ago. You are here to create yourself, continuously. - Richard Feynman |
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LakersRGolden
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Joined: 13 Jan 2002
Posts: 8058
Location: Lake Forest
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| Posted: Wed Aug 07, 2024 1:34 pm Post subject: Re: Student Loan Negotiation |
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| Heartburn wrote: | Has anyone successfully negotiated out a reduction on a (private) student loan balance? Here's what I'm thinking. Let's say a borrower owes $50 in student loans. The task is to see if the servicer will accept $15 or some other sum less than $50 to wipe out the entire balance. The rationale is they get to recoup some of their past-due balance from a borrower who is totally willing to go into absolute default.
It's a short-sale in the private student loan market. |
No reason for the creditor too. Defaulting won't clear a student loan debt. It's cheaper for them to slap a lean on everything you own and ruin your credit. They'll get their $15 or more eventually. |
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Heartburn
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Joined: 04 Oct 2001
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Location: The Titanic that is the USA
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| Posted: Wed Aug 07, 2024 1:45 pm Post subject: Re: Student Loan Negotiation |
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| LakersRGolden wrote: | | Heartburn wrote: | Has anyone successfully negotiated out a reduction on a (private) student loan balance? Here's what I'm thinking. Let's say a borrower owes $50 in student loans. The task is to see if the servicer will accept $15 or some other sum less than $50 to wipe out the entire balance. The rationale is they get to recoup some of their past-due balance from a borrower who is totally willing to go into absolute default.
It's a short-sale in the private student loan market. |
No reason for the creditor too. Defaulting won't clear a student loan debt. It's cheaper for them to slap a lean on everything you own and ruin your credit. They'll get their $15 or more eventually. |
It's a non-recourse loan so they can't just put a lien on everything you own. They'll ruin credit, sure, but if the borrower doesn't care, it won't matter much.
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