As a private student loan negotiator with many years of experience, I have been asked many different questions. One of the most common questions I am asked is whether I should strategically default on a private student loan to help me out of my financial predicament.
As I so often say, any negotiator or financial advisor worth their salt should never recommend a borrower to strategically default because it is a decision that must be made by the borrower themselves. There are plenty of factors they have to take into consideration, weighing up the pros and cons, of which there are many.
It can be incredibly disheartening to realize that despite the huge monthly payments made over many years, you don’t appear to make any dent in the outstanding balance. So it is unsurprising that many students consider strategically defaulting on their private loan. Even students who are able to meet their monthly demands consider going down this route because the limited choice in payment options, combined with high interest rates, make a strategic default an appealing option.
You should understand that if you decide to go down this route it will have an adverse effect on your credit rating. Despite this, when you take everything into consideration you may still decide this is the best option available to you. Why? Because in the long run you will end up saving yourself a lot of money when you factor into consideration that you will end up paying tens of thousands of dollars in interest over many years before you even come close to paying off your student loan.
This is why a strategic default is an appealing option because yes it will damage your credit score for up to 2 years but when you compare the savings you’ll make against the many years of interest payments, it seems to be a more viable option.
Is Navient Your Lender?
One of the most aggressive lenders is Navient. They are particularly aggressive in hunting down outstanding payments by contacting friends and family in order to reach the borrower and demand payments are made. They also rely on heavy-handed tactics by employing the services of debt collectors to enforce any missed payments.
Negotiating Your Student Loan With Private Lenders
Student loan lenders can make your life incredibly difficult when trying to apply for a strategic default. If you attempt to negotiate a default by yourself, these experienced lenders will use every tactic in the book to gain an advantage over your lack of understanding of the overall process, relying on you making detrimental mistakes in the negotiating cycle. This is why it is highly advisable to utilize the skills and knowledge of an experienced private student loan negotiator such as Andrew Weber.
There are many pitfalls you must avoid in the negotiating cycle. Some of these include holding back from providing documentation on your tax records, bank statements and so on in order to have a stronger negotiating hand.
Contact Andrew Weber To Help Negotiate Your Private Student Loan
If you would like to find out more about how Andrew Weber can help you negotiate a strategic default loan, you can contact him via his number 937-503-4680. Alternatively, you can visit his website at mycreditcounselor.net.
Here is some additional advice on how to settle private student loans with Key Bank.