| During a negotiation, two or more parties discuss | | | | to them. |
| certain mutually satisfactory conditions to resolve a | | | | Debt negotiators do not come cheap. The biggest |
| certain issue. Students can also negotiate with their | | | | qualification of a debt negotiator is that they carry |
| lenders about loans that they find difficulty in | | | | some clout and are experienced in matters of loan |
| repaying. Loan negotiations cannot result in complete | | | | financing. Most debt negotiators charge their fees |
| elimination of the loan, but the student may get a | | | | upfront, or at least 60% in advance. This is a huge |
| reduction in the rate of interest or longer tenure of | | | | setback for student borrowers who are already deep |
| repayment or some other such concession. | | | | in debt and in fact, defeats the entire purpose of |
| Debt negotiations are best done by a third, mutually | | | | negotiation. Negotiators are not very transparent in |
| neutral party. There are negotiating agencies that | | | | their dealings and let the student debtors know only |
| study the case of the student who has taken the | | | | what they need to know. These are dangerous |
| loan and then discuss with the lenders, trying to get | | | | issues and there may be unsettled dues towards the |
| as much benefit as possible for the student. | | | | negotiators even after the debt has been long |
| Negotiators work on behalf of both the lender and | | | | settled. |
| the borrower and a successful negotiation is one in | | | | Students can perform their negotiations themselves, |
| which both the parties are satisfied with the agreed | | | | thus eliminating the need of negotiators. A negotiating |
| conditions. | | | | agency won't do much more than what the students |
| Usually, when a student decides to enter into | | | | can do themselves. If there was a guarantor involved |
| negotiations, there are already stalled payments. But | | | | during the processing of the loan (which is now |
| the very act of entering into a negotiation indicates | | | | obligatory under Federal Family Education Loan |
| that the student is willing to repay some of the debt. | | | | Programs), then debt negotiations become simpler. |
| However, a student must resort to negotiation only | | | | Students can negotiate on any loan amount, but the |
| as a last measure. Lending agencies have no wish to | | | | decision of acceding to the negotiations lies in the |
| enter into negotiations, as there is no logical reason | | | | hands of the lenders. |
| for them to settle for anything less than what is due | | | | |