Debt Settlement and Student Loans

A debt settlement plan can be a boon for financially strapped consumers with unsecured debt that has become a great burden. For a young adult who has a large amount of student loan debt there may be questions as to which types of student loans can be included in a debt settlement plan or agreement, as so many of the graduating college seniors today start off with a fair amount of student loan debt to repay.

Federally funded student loans are not considered unsecured debt and thus typically cannot be included in a debt settlement plan, but most private student loans can be included in with other loans or as a stand alone debt to be settled. Recent developments in the student loan lending process have made it tougher to secure many of the more lenient federal loans that were available in the past for qualified students and as a result, more students have turned to private lending from banks or other financial lenders to fund an education.

A few statistics regarding student loan debt:

- Estimates show that two thirds of all college students graduate with student loans.
- Student loan debt for the average college graduate is estimated to be around $25,000 at graduation time.
- The total amount of credit card debt in the US, according to recent statistics, is lower than the amount of total student loan debt, which is estimated at well over $900 billion.

A debt settlement attorney can work to negotiate unsecured debt, including some student loans where possible, down to a manageable level, relieving some of the stress that goes along with the pressure of a large amount of debt In certain situations, not only can the amount of interest be negotiated down, but also late fees that have been incurred. Types of debt that can be included in a debt settlement include:

- credit card debt
- medical bills
- private loans
- unsecured lines of credit

Debt settlement for an adult in their early 20′s can be a consideration for those who graduate and cannot find gainful employment after a period of time or have accepted a position that doesn’t provide enough income to afford the student loan debt minimum payment.

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Tags: Debt Settlement, Student   Posted in Debt Consolidation Online