How a Student Loan Modification Works.
At the outset, you should be aware that if you’re making payments on your student loans and can afford to continue making payments, don’t stop doing so.
If you are capable of making your loan payments, you are probably not entitled to nor will you ever get a student loan modification.
If, however, your loans are in or near default we will communicate this fact to your lender and provide them with the information that they need to make an informed decision about your requested student loan modification.
Once we evaluate your situation and your goals, should we agree to take your file, the first step is for us to contact your lender and advise them of your desire.
We will send the lender a letter of representation and advise your lender that they are to cease all direct communication with you and direct all future correspondence, other than regular notices and monthly bills to our office.
We will assert your rights under the Federal Fair Debt Collection Practices Act so that you will not be burdened by the incessant phone calls that occur once you become in default and the regular payments to your lender ceases.
We will then provide your lender with financial information about your income and expenses so that the lender can make an informed decision about whether or not your lender would make more money by settling than by pursuing the debt.
This is not an easy process and it can take some time to pursuance the lender of the wisdom of providing you with a modification that works for both you and your lender.
We will also review your file to see if there are any irregularities in its origination or payment terms.
Finally, unless you are prepared for the potential negative impact that a default in your loan may have you should not pursue a student loan modification.
This does not mean, however, that all debt negotiation results in negative credit reporting. If there is negative credit reporting we have tools at our disposal to assist you in mitigating the results of such reporting.
While there is never a guaranty that any lender will negotiate with you, the likelihood of success is greatly enhanced once you retain a professional debt negotiation specialist.
Please feel free to call the office at 800 – 233 – 8521 and ask to speak to one of our counselors and by all means, ask about our Performance Guarantee.