| Trying to settle student loan debt can be a taxing | | | | percentage of the original loan, they will likely not |
| process. Here are a few things to remember when it | | | | want to work with you at all. When you try to settle |
| comes to trying to settle your debt with ease. | | | | student loan debt you need to keep realistic |
| Step One- Loan Forgiveness | | | | expectations. |
| Before you jump in to trying to settle student loan | | | | If the loan is still current you may be able to shave |
| debt, you may want to look in to the programs | | | | off up to 30% of the loan with a settlement offer. |
| available to forgive or cancel the debt entirely. As of | | | | The general rule of thumb is to subtract the interest |
| July 2009 there will be more programs available to | | | | over the life of the loan, and offer the principle |
| help with this. There are programs intact that help | | | | amount. You can try to settle the debt for less than |
| people working in certain jobs to forgive part or all of | | | | the principle, but chances are good that the lender will |
| your loan. If you work in a civil servant position, | | | | want at least that amount repaid. |
| certain volunteer organizations, the healthcare field in | | | | If the loan has already gone to collections then you |
| some area's or work for any form of government | | | | can get away with a lower settlement offer. Start |
| and make less than a certain amount per year you | | | | by offering 25% of the loan amount, and if that |
| may be eligible for loan forgiveness. These programs | | | | doesn't work go up from there. You can usually get a |
| work differently depending on which one you qualify | | | | collection agency to settle for around 50% of the |
| for. You may have to work for up to five years in | | | | original loan amount. |
| the field, or work a set number of hours per year, | | | | Step Three- Create A Fund |
| but you may be able to have pretty big portions of | | | | If you try to settle student loan debt without having |
| the loan forgiven. | | | | a lump sum payment to offer your odds off getting |
| There are also programs available that will allow you | | | | a decent settlement will be much lower. If you can |
| to lower your payments based on a sliding scale. | | | | see that you are struggling and may need to |
| Some people will qualify for $0 payments. It's best to | | | | consider a settlement, create a fund dedicated to |
| explore these options before trying to settle the | | | | saving for this. You must be able to commit to |
| debt. | | | | regularly putting money aside for this. If you try to |
| Step Two- Understand Appropriate Settlement | | | | make a settlement offer and have a large amount to |
| Offers | | | | give them in one payment you are more likely to be |
| If you call your lender and ask to pay a very small | | | | successful. |