From the very beginning, we’ve been committed to helping regular consumers deal with various types of debt. Whether they struggle with multiple credit card bills or face unexpected medical costs that escalate beyond their control, our clients often face financial difficulties that aren’t of their own making.
Short of winning the lottery, there’s no “magic bullet” that can put debt problems to bed. Since we don’t advise our clients to spend all their hard-earned funds on lottery tickets, we’re committed to offering commonsense solutions to long-term debt burdens.
That’s why we’re pleased to announce our latest service: a student loan debt relief program that can reduce certain types of student loan debt and make it easier to pay off these important but often costly obligations.
National Debt Relief: A History of Excellence
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While we don’t make a habit of boasting, we’re proud to be one of the country’s most successful debt consolidation companies. With a top-notch rating from the Better Business Bureau, numerous awards from top financial authorities and a loyal base of satisfied customers, we set ourselves apart from the competition.
Over the years, we have helped thousands of regular consumers reduce their unsecured debt burdens by significant margins. Our fair, ethical business model eschews upfront fees, monthly service charges, high-pressure sales and many of the underhanded tactics that our competitors employ. Our results speak for themselves.
Going forward, we’ll be leveraging the considerable talents of our debt relief specialists and expanding into the student loan space. Let’s look a bit more closely at the problem of student debt and the tools that we offer to folks who struggle with it.
The Shocking Truth About Student Loans
In the “good old days,” a college degree was a surefire ticket into the middle class. Parents implored their children to get good grades and study hard for the tests that would earn them admission into the country’s elite colleges.
These days, the picture is much more muddled. While college degrees represent an important first step for folks who wish to get ahead, they’re no longer the only ticket to economic prosperity. In many cases, students need to obtain specialized four-year degrees or graduate degrees to find stable, high-paying jobs.
On its own, this would be bad enough. To add insult to injury, though, a university education is now more expensive than at any time in American history. Our student loan information page goes into greater detail about just how costly education has become.
Most students need some form of leverage to afford their degrees. While many government-backed student loans come with relatively low interest rates and reasonable repayment terms, their huge principal amounts and long maturity windows ensure that they accrue thousands of dollars in interest alone. It’s not unusual for graduates to deal with monthly principal-and-interest payments of $400, $500 or $600. That’s equivalent to the monthly cost of a luxury car.
Since student loans usually can’t be discharged in bankruptcy, graduates are left no choice but to carry this burden for years or decades. Fortunately, we may be able to help.
Types of Student Loans
Student loans may be backed by private banks or the federal government. Stafford, Perkins and Direct Loans are all guaranteed by the federal government and come with special privileges and responsibilities. This is both good and bad: Whereas interest rates on federal student loans are lower than rates on just about any other credit facility, federal loans must be repaid in full under normal circumstances.
For cash-strapped borrowers, this requirement can be overwhelming. It’s virtually impossible to shake off federal student loan obligations by declaring bankruptcy. These obligations may only be modified in cases of extreme hardship or permanent disability.
Privately backed student loans offer a different mix of benefits and drawbacks. Since they’re issued by private banks and aren’t guaranteed by the federal government, they can carry higher interest rates and feature novel structures.
At the same time, private student loans are somewhat easier to modify or forgive. While it’s still difficult to discharge these loans in bankruptcy, private student lenders may be willing to refinance them or accept less than what they’re owed on a case-by-case basis.
That’s where we come in. After building our reputation by helping consumers who struggle with credit card debt, medical bills and other unsecured obligations, we’re proud to be tackling a new, equally onerous form of debt.
Review of Student Loan Debt Relief Options
Now that you know what your student loan options are, let’s take a moment to review the options for consolidating and paying student loan debts off. Let’s remember that anyone can apply for consolidation programs all on their own at no charge. It’s easy to call a private lender or a federal lender and complete the required paperwork to apply for consolidation loans. They’re here to help you so be sure to take advantage of it. If you don’t want to deal with the process, we can help you do this as well.
Repayment Plans: GraduatedYour monthly payments will start out low and every two years they will increase. This is an ideal plan for any borrower who has little to no start up income but expects their income to rise over the course of time.
Repayment Plans: Extended Fixed or graduated monthly payments for up to 25 years of your life. Generally, lower than the payments you’d make if you had a Standard or a Graduated repayment plan. This is the ideal plan for a borrower who will have over $30,000 in eligible student loan money.
Repayment Plans: Income BasedMonthly payments based on your income and your family size. Adjusted each year accordingly to how much money you’re making annually as well as your family size. They will amount to 15% of your discretionary income and be made over the course of 25 years. They are generally lower than the other plans and will never be more than the 10 year standard repayment amounts. Ideal for a borrower that is seeking a reduction in their monthly payments in order to make their student loan debts more manageable.
Pay As You EarnYou’ll have monthly payments which are based upon your income and your family size. They’re adjusted annually according to your annual income and family size. They generally amount to 10 percent of discretionary income made over a time frame of up to 20 years. They are generally lower than the other plans and will never be more than the 10 year standard repayment plan. An ideal choice for those who need to have a reduction in the monthly payment in order to make student loan debts manageable and make monthly payments more affordable. Pay what you’ve earned plans have the lowest possible monthly payment of all the repayment plans that are income based. This will give a longer repayment period and are you will likely pay out more interest over the course of the loan.
Repayment Plans: Income contingentMonthly payments which are made over the course of 25 years maximum, are based upon adjusted gross income as well as family size and the total cost of the Direct Loan. Monthly payments will be based upon no more than 20 percent of the monthly discretionary income or in some cases, the amount that is to be repaid within 12 years multiplied by the income percentage factor which will vary according to the annual income. Ideal for borrowers that need to make smaller direct loan payments but for whatever reason don’t qualify for IBR or PAYE plans.
Repayment Plans: Income SensitivePayments will increase or decrease depending upon the annual income. They are made for up to 10 years and the payments are pegged to a set percentage of the gross monthly income which is generally between 4 and 25 percent. Ideal for a borrower who wishes to make lower repayments on loans.
Repayment Plans: StandardMonthly payments for this plan are set at $50 each and every month and will be made for up to 10 years. Ideal for a borrower desiring to pay their federal student loans within the shortest amount of time. May result in a lower total payment of interest when comparing it to other plans as the monthly payment may actually be higher than the monthly payment of other plans. It may not be as advantageous for a borrower with higher student loan debts to the income ratio if they are trying to make lower payments.
Federal Student Loan ConsolidationThere are a few options here:
- Direct Loan Consolidation
- The borrower may combine multiple student loans into one loan if they are all federal.
- A single monthly payment in lieu of multiple payments
- Extend the period of the loan.
- Most of the federal student loans are able to be consolidated.
- To do this, you must have at least one Direct Loan or one Program loan in a grace period or a repayment period.
- A fixed interest rate for the entire life of the Direct Consolidation Loan.
Centralizing the loan into one simple bill. Monthly payments lower, up to 30 years to repay the loan. May allow for access to alternative loan repayment plans. The ability to switch the variable interest rates to a fixed interest rate is a bonus.
Some loans can be forgiven after X amount of time depending upon enrollment in eligible repayment plans or if they are considered for PSLF.
Loans may take longer to repay and thus lead to more payments at a higher interest rate over the term of the loan. May lose benefits that are offered with original loans such as discounts, principal rebates and the like. Loans may be combined into Direct Consolidation Loans and can’t be removed.
DefermentThe time in which the loan is to be repaid is deferred temporarily.
This may work during times of half enrollment or unemployment for up to 3 years. No repayments are required during the deferment period.
ForbearanceIf a borrower doesn’t qualify for the above, they can stop making payments or reduce their monthly payment for up to one year. Interest will continue however.
There are two kinds of forbearance: financial hardship and illness and Mandatory for those enrolled in professional programs such as medical or dental residencies as well as some government programs.
Public Service Loan ForgivenessThis is to boost public service employment. Created by Congress in PSLF programs in 2007.
All borrowers must meet the forgiveness criteria if they are in the public service sector and have made up to 120 payments qualifying toward outstanding Direct Loans.
Any Direct Loan not in default would qualify for loan forgiveness.
If you consolidate your federal loans into a Direct Consolidation Loan, you may also qualify for public service loan forgiveness. Only the payments you make under the Direct Consolidation loan will apply to the requirement of 120 monthly payments.
Only loan payments made after 10/1/07 qualify for forgiveness. You must have made 120 full, on-time, monthly payments after 10/1/07. You must have been working full time for an eligible public service organization when you made your payments and the payments must be made under an eligible repayment plan.
Qualifying public service organizations include government organizations, select tax-exempt non-profit organizations, and select private, non-profit organizations.
If you are eligible, enrollment in an IBR, PAYE or ICR repayment plan may maximize the amount in outstanding loans eligible for forgiveness after the 120 payment requirement is met. For example, if you can enroll in a pay as you earn plan and make all 120 payments, you could have a significant portion of your student loan debt forgiven.
As you can clearly see, there are many new ways to get a handle on your student loans. Student loan debt consolidation can provide much needed breathing room when you are just starting out in the workforce and need a little helping hand.
And remember, you can do the paperwork on these programs on your own and enroll on your own. If you are not comfortable with this or do not want to deal with the hassle, you can always give us a call and let us help you. There is a charge for this service but we only get paid when you get approved for a program. So if we don’t help you with your student loans, we don’t get paid.
Fill out the form or give us a call and let’s see how much you can save.
How Can We Help?
Although they’re marked by broad differences, we offer help with federally backed student loans as well as private student loans. Regardless of the amount or type of student loan debt you carry, we aim to make it easier for you to pay it off in a timely fashion and work to repair your household budget in the process.
For clients who mostly deal with private student loan debt, we offer a program that bears some resemblance to the signature debt settlement services that we provide for consumers who carry credit card debt, medical debt and other unsecured obligations. This program can be customized to fit the needs of each individual borrower and can result in a significant reduction in student loan debt over a period of several years.
For clients who mostly carry federally backed student loan debt, our services focus on financial education, credit management and other forms of debt relief. These programs can have a dramatically positive impact on our clients’ household budgets and create much-needed financial breathing room.
Although we’d love to offer debt settlement services for federal student loans, the federal government currently forbids this practice for the loans it guarantees. However, our industry experts continuously monitor the regulatory and policy aspects of the business and respond to changes accordingly. We’re always looking for ways to serve our valued clients better.
How Our Student Loan Consolidation Service Works
The first step in our student debt relief process is a no-obligation consultation that evaluates your unique mix of student debts and creates an “action plan” that takes your budget, debt mix, income, secured obligations, credit history and other factors into account. While this plan will be tailored to your specific needs, it will resemble the debt relief plans that we provide for other student debt clients.
It’s important to note that we only accept clients who make a “good fit” for our programs. If we don’t think we can help you or aren’t sure that we can do the best job in your specific situation, we’ll recommend a program or course of action that stands a better chance of providing real results.
If your consultation determines that you’d be a good fit for our program, we’ll prepare all the necessary paperwork to get you started. The process for approving these documents and negotiating a settlement for your outstanding loans can be complex and time-consuming, so we handle it from start to finish.
Along the way, we won’t charge unnecessary startup fees or spurious monthly maintenance fees. Like the clients who use our credit card debt settlement services, we’ll deposit your student loan settlement funds into an escrow account that remains under your control. These funds won’t be used to settle your debts or pay our fee until after your paperwork has been approved.
In fact, you’ll only be required to pay for our services if we can successfully settle your student loan debts. Our student loan debt relief program is completely performance-based.
Once you enroll in our program, you can rest easy with the knowledge that you’re working with one of the best debt relief providers in the business. Our student loan debt relief services come with the brand, accreditation and expertise that have attracted thousands of consumers to our credit card debt relief programs.
National Debt Relief’s Student Loan Relief Service: Features and Benefits
Our comprehensive student debt relief services don’t simply offer peace of mind. In addition to the trusted National Debt Relief badge, our student loan clients enjoy:
- The freedom to avoid direct contact with student lenders while enrolled in our program
- A reduced risk of bankruptcy or default
- Help with budgeting, debt management and other financial matters
- Support from experienced National Debt Relief operatives at every step of the process
Work With a Trusted Student Loan Debt Relief Partner
College coursework is supposed to be an investment in your future, not the catalyst for a lifetime of debt and frustration. Unfortunately, far too many well-meaning people struggle with student debt for years after earning degrees or dropping out of school for good.
That’s unfair, and we’re committed to doing our part to make it right.
If you’re tired of receiving student loan bills that you can’t afford to pay, National Debt Relief may be able to help. To learn more about our student loan relief services, fill out the no-obligation contact form on our site or call one of our student loan debt experts at 888-275-4499. Your free, no-obligation consultation could be the first step on your journey back to financial health.