What Does a Navient Student Loan Settlement Offer Look Like
Say you owe $100 thousand. If you’ll catch on , your private student loan debt settlement will likely be somewhere between $30 thousand and $60 thousand. does one need to have a payment to barter a settlement? Not always. But it’s super helpful. Typically, the greater your payment , the more you save.
That may not be your story though. And that’s okay. you continue to could also be ready to negotiate a settlement for monthly payments. It’s just that settlements with no payment can cause extremely high monthly payments because you always get somewhere between 24 to 48 months to pay the settlement amount fully .
Let’s put that in perspective by using our example from above. Say you agree the $100 thousand you owe for $50 thousand. Your monthly payment are going to be somewhere between $1041 and $2083 counting on what percentage months you’re given. Many borrowers simply don’t have that quantity of cash available monthly . watching those numbers, you’ll be thinking: maybe I could afford the settlement if you negotiate it right down to 30% of the balance payable over 48 months. once you don’t have a payment and you can’t afford a high monthly payment, you’re basically hoping to barter rock bottom settlement possible payable over the longest period of your time possible.
In my experience, that outcome is unlikely. And I’d tell you that and wouldn’t take you on as a client. You don’t need to hire a lawyer or a debt settlement company to barter a settlement on your behalf. you’ll roll in the hay yourself. Just prepare yourself for all the hours of phone calls and rudeness and harassment that comes with negotiating a student loan settlement.
The lawsuit brought by the CFPB does cover both Private and Federal student loans so that the lawsuits will help everybody regardless of the type of loans. The essential accusation from the Consumer Financial Protection Bureau’s lawsuit is establishing barriers to repayment by giving students misleading information, incorrectly processing the payments and failing to react when the students disagreed.
The Illinois lawsuit accuses Navient of misleading student loan collection practices. Navient gave the borrowers false information about their options so they cannot get out of the default. There is the Federal Student Loan Rehabilitation Program which was made to help students who fell behind on payments to help them get back on track and carry on repaying their loans without additional interests. There are certain cases where a student cannot repay her loan. The reason might be injury, unemployment or other financial difficulties. Navient always tried to make sure that students never get out of the default by giving them deceptive information. The Federal Student Loan Rehabilitation Program was already very confusing, and Navient took advantage of it and made it harder for its borrowers.
What I am about to tell you might sound a bit crazy but in case the Navient lawsuits are accepted, and you successfully get your loans discharged or forgiven you will have one last problem to solve which is the tax. When you receive loan forgiveness, the IRS considers it a taxable income. For example, if you owed 20,000 US dollars to Navient which is now forgiven, you might owe IRS about 4 to 6 thousand dollars. The worst thing is that the IRS will demand the whole amount right away without giving you a chance of paying it monthly. But that should not make you devastated because there is and will be a lot of borrowers like you who will owe money to the IRS and it can also be resolved just like Navient loan forgiveness depending on the situation.