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08-16-2004, 11:03 AM
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#1 |
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Join Date: Aug 2004
Posts: 2
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negotiate discounted payoff?
I have a 20+ year old student loan that won't die. After consolidation and rehabilitation from default, my interest rate is 9%, and my prospects are not good for finding more remunerative work that will make the debt burden bearable. A family member has offered to help with the cash to simply pay off the loan, but I don't know how to negotiate for a discounted payoff amount. Any ideas?
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08-16-2004, 01:40 PM
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#2 |
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Registered User
Join Date: May 2002
Posts: 7
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What is your current salary and current debt? Why do you feel that you can not make more money? How much do you currently work? Why would the creditor be willing to negotiate a discounted payoff amount?
When you try to negotiate a discounted payoff amount, will you try to pay back the full amount you borrowed, and get them to discount only the interest and fees? or are you hoping to payback less than you borrowed? |
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08-17-2004, 01:20 PM
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#3 |
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Join Date: Aug 2004
Posts: 2
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more info
My current salary is $20.5 K. I have $15,802.42 total owing in student loans, ($7,500 in principal), and almost $10 K in credit card debt.
Since I am a musician and writer, and I want to continue with these activities, I stand a good chance of remaining fairly poor. I'm in a NYC, whose job market is extremely tough right now. I'm also considering some kind of skills retraining (either a masters or certificate program) that will improve my ability to make money. Basically, I want to clear the decks so that I can move forward with a lower overhead. I'd like to be able to pay off the principal only. I think the lender's incentive is clear: better to have a bird in the hand than two in the bush. Does that clarify the situation any? |
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02-03-2006, 01:55 PM
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#4 |
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Registered User
Join Date: Feb 2006
Location: Live in San Juan, PR
Posts: 7
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This is a good question, I hope someone can answer it because I have a similar situation but with more money owed and my paycheck has been garnished 15% for the last year. How to negotiate?
My original loan ( Gov. guaranteed student loan) was $42K I defaulted (12 years) and its been taken over by a collection agency (I think it went through a few agencies) So with penalties, interest and fees they say its now $92K. When I talked with them recently (the collections agency) they said I could go through a rehabilitation program (get 25% taken off penalties) or try to pay it all off.... If I could pay them off (lump sum)they said they would not go below $70K because that is the principal... I thought the principle was $42K? If I offered 45K would they accept? they got about 12K from the whole year of pay garnishment and my Tax refund. What to do? any insight would be very appreciated. Thanks |
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02-03-2006, 02:51 PM
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#5 |
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Registered User
Join Date: Feb 2006
Location: Live in San Juan, PR
Posts: 7
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After going through all these posts and judging by how many people have read them, their are many people in my same shoes, but with different amounts owed.
I am at a point in my career where I am able to pay back the loan over time ,but to have it more then double due to penalties, interest, and fees while I was making under 20K for 10 years and not able to pay, frankly sucks (I making about 55K know). I figure that since I cannot declare bankruptcy and they are already garnishing my pay, they really don't have to negotiate anything. But my employment is still volatile and I could loose my job at anytime. The real question about trying to negotiate a payback may be "how much did the collections agency pay for the loan" (and is there a way to find out)? Is it 42K or 70K. I know they are not doing this for free. After talking with them they said that of the 15% garnishment 20% goes towards the interest and penalties. A lot of these posts are empty with hardly any replies. I hope that someone who has experienced this could help out? Thanks in advanced. John |
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03-09-2006, 02:19 PM
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#6 |
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Registered User
Join Date: Mar 2006
Posts: 3
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I too have faced a similar situation in the past. I spent many months researching some consolidation help resources. I found some very interesting facts that might help. I wrote a report about my findings. If interested in reading it, see below.
Warmly ML
__________________
Life Isn't Always Easy Free Report on The Best Student Loan Consolidation www.yourdebtconsolidation.info |
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03-18-2006, 11:02 AM
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#7 |
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Registered User
Join Date: Feb 2006
Location: Live in San Juan, PR
Posts: 7
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Anyone else have some info about repayment of student loans in default? Negotiating, settling, something?
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04-07-2006, 01:55 PM
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#8 |
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Registered User
Join Date: Feb 2006
Location: Live in San Juan, PR
Posts: 7
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About 2700 people read this thread, and nobody with some info.....kinda pathetic ha?
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05-08-2006, 07:54 PM
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#9 |
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Registered User
Join Date: May 2006
Posts: 1
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I am going to give it a try....
I am a professional with a very high balance of student loans, about $107K. I currently pay $788 a month about which 98% goes to interest. My principle balance is in the $85K range, but due to some deferments while I got my career in order the interest has gone through the roof.
In September of this year, there is a very good chance I will be coming into a decent sized windfall. My plan is to negotiate the payoff as close to the principle amount as I can. I may get nowhere but it is certainly worth the effort. The way I see it, a debt holder can wait 30 years (as in my case) and get the full pay-off amount then...if I make it there, if x,y or z does not occur and force me to live under a bridge. OR, then can take the principle plus 25% or .....and take the cash today! I would take it! As folks have pointed out, over 300 views and no substantive information. You all have my word that I will post my results. But remember it is still 4 or more months away....so be patient. John. |
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05-15-2006, 11:56 PM
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#10 | |
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Registered User
Join Date: Apr 2006
Posts: 11
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Quote:
__________________
loan and debt aid Last edited by organ : 05-25-2006 at 10:01 AM. |
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05-26-2006, 12:22 PM
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#11 |
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Registered User
Join Date: Feb 2006
Location: Live in San Juan, PR
Posts: 7
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Thanks Owen
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06-29-2006, 09:45 PM
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#12 |
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Registered User
Join Date: Feb 2006
Location: Live in San Juan, PR
Posts: 7
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Bumping this forward, hopefully some new posts. Jonn
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07-25-2006, 03:06 PM
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#13 |
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Registered User
Join Date: Jul 2006
Posts: 1
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Student Loan
Hello All,
I have been dealing with ED regarding my spouse's defaulted loans and the most that they will forgive is the collection fees when you make a lump sum payment. It flies in the face of reason that they would not settle on an amount that would get them a substantial part of the debt. I made them an offer of the principle plus 70% of the interest and they still refused. For some beaurocratic reason this was unacceptable to them. Since my spouse does not work and her debts previous to our marriage I am not liable for, you would think that they would jump at this offer. As a result I am in no rush to meet them half way anymore and have made the adjustments to my taxes so that I don't have a refund garnished. So sad to say, you will find little recourse than to follow their repayment guidlines. Best regards, CLR |
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09-01-2006, 06:26 PM
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#14 |
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Registered User
Join Date: Feb 2006
Location: Live in San Juan, PR
Posts: 7
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Thank you ciskokidd, anyone else with some info? John
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02-27-2007, 04:47 PM
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#15 | |
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Registered User
Join Date: Feb 2007
Posts: 1
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Quote:
Still paying, though. |
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