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What Is Private Student Loan Debt Settlement?

Back to questions list February 19, 2021

When a student or his family can’t pay off a debt, they usually decide to write a debt settlement private student loan letter. If this decision comes to your mind, it should be the last step in your attempts to pay off the debt.

Get Out of Debt

You should keep in mind that if you have enough money (sufficient income) to pay off the debt, you will never qualify for private student loan debt settlement. But if you are in default on your debt, then your lenders might consider your request.

Debt settlement for private student loan differs from the federal loan debt settlement. APRs usually differ from lender to lender. Therefore, terms, conditions, and amounts of the settlement also differ. Still, the settlement of private student loans is more flexible. For instance, federal agencies usually require to pay off the whole sum in one lump during 90 days after a settlement is approved. Private lenders might be more permissive.

Here are the reliable private student loan debt settlement companies that might help you to reach a beneficial outcome:

  • SoFi with rates ranging from 2.56% to 6.74%.
  • Darien Rowayton Bank with higher APRs – 3.64% – 7.20%.
  • Common Bond – APRs: 2.56% – 6.74%.
  • ELF Bank with the lowest rates – 2.10% – 6.69%.

All aforementioned banks specialize in undergraduate and graduate loans.

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