students loan consultancy

Latest news from REC Real Estate Consulting

08/12/2009

LOAN MODIFICATIONS: RESIDENTIAL LOAN MODIFICATION, COMMERCIAL LOAN

MODIFICATION, STUDENT LOAN MODIFICATION,SBA LOAN MODIFICATION. OUR ATTORNEYS WILL NEGOTIATE FOR YOU!

WE OFFER OVER 50 YEARS OF COMBINED LEGAL EXPERIENCE AND A PROVEN TRACK RECORD IN MODIFYING CONSUMER LOANS WHETHER IT BE FOR COMMERCIAL, RESIDENTIAL, SMALL BUSINESS OR STUDENT LOANS...



With the American economy in turmoil it seems that more and more Americans are facing struggling with an

inability to pay off their unsecured debts including student loans for themselves or their children. While

most people are aware of the potential benefits of seeking a loan modification for their home mortgage, most

people do not realize that the same relief may be available for their Student Loans. As Loss Mitigation

Professionals it is OUR job to EDUCATE our clients!!! Similar to property secured loan modifications,

lenders are often willing to reduce a borrower’s monthly payment using a number of different methods

including reducing their interest rate, lengthening the term of the loan, allowing for interest only payments

for a predetermined period, and delaying payment of past due amount to the end of the term of the

commercial loan. In the case of a student loan, because it is a no recourse loan, the lender may be more

willing to negotiate because there is no collateral security to repossess. What About Temporary Payment

Suspension? There may be times when even an affordable repayment plan is too much for a borrower. They

may be temporarily unemployed or unable to deal with student loan payments for other reasons, such as

active duty military service. The good news is that they can suspend their payments, at least for a while, in

limited circumstances. The bad news is that in many cases, your interest will continue to accrue, and will be

added to your principal when you begin repaying again. This is a common way that loan amounts can grow

to unmanageable levels. Borrowers who need deferments and forbearances may be less able to pay back an

even larger loan, and find themselves worse off at the end of a break in repayment than before. PCAG will

negotiate with your lender on the accrued interest so you are not stuck in a never ending loan. The first

category of suspensions, grace periods, automatically comes with most loan programs. Lenders will give a

borrower a break so that they don’t have to start repaying right after graduation or withdrawal from a school.

The second category, deferments, are available if a borrower meet certain conditions, such as unemployment

or economic hardship, and only if they are not yet in default on your loans. The Borrower will not be

charged interest on subsidized loans during a deferment period. Forbearances also allow you to suspend

payments and are available even if you are in default, but you will be charged interest during forbearance.

Student Loans & Bankruptcy: Student loans are not usually discharged in bankruptcy. It is common for a

borrower to go revolving 90 days late with their loan.. BUT IT IS SIMPLY NOT NECESSARY!