Thousands of American's are seeking relief from their Sallie Mae loans. There are literally hundreds, even thousands of searches daily for forgiveness programs that help lower college debt. Not to fret, there are programs that help reduce payments, lower payoff and rid you off your Sallie Mae loans once and for all.
Technically, there aren't loan forgiveness programs for non-government backed loans, but since forgiveness is such a highly searched term from people looking for help, we used it in this article. The programs offered to help lower Sallie Mae loans and other non-government backed loans like SoFi, Discover and Wells Fargo, are relief programs that settle these loans for a negotiated payoff. These programs are intended for those who can't afford their payments and haven't been able to get help from their lender in an affordable, reduced payment plan.
To find out why Sallie Mae loan forgiveness is in such demand let's look at a little history. Sallie Mae was founded in 1973 and began as a company to service federal student loans. In 1997 they started a mission to become mainly a non-government student loan lending institution. Why? There's more money to be made by making independent loans. Making these loans directly, and not just servicing government loans, was better for their bottom line.
With the birth of higher interest private loans came more and more people struggling to pay their debt. It wasn't until recently, though, that debt relief companies dealt with, and began enrolling, Sallie Mae private and other non-government backed loans.
Why then is Sallie Mae in the business of making non-government backed loans if they're so much harder to afford than federal loans? Because, even though so many people seek out help with lowering their Sallie Mae loans., Sallie Mae still makes more money making private ones. How, you ask? Because they also own Pioneer Credit Recovery, Inc. and General Revenue Corporation, the collection companies that severely defaulted Sallie Mae loans are sold to.
After 1997 Sallie Mae was not allowed to continue making federal loans, but they still service them to this day.
Sallie Mae Forgiveness
- Will They Accept a Reduced Amount?
The short answer here is, yes. The federal government does not back private loans like they do federal loans. Therefore, Sallie Mae assumes the full risk of these loans, so they are unsecured. The difference when you are dealing with an unsecured loan versus a loan secured by the government is more wiggle room. Federal loans have more options on reduced payment plans but there is no option to get your payoff amount lowered. Private loans can be settled and negotiated for less. Sallie Mae loan forgiveness, as a result, is a very searched phrase from borrowers who have Sallie Mae loans that are trying to get fast relief from their loans.
These loans are not tied to collateral and your tax return cannot be garnished for being delinquent. This means that you, the borrower, has some negotiation room when it comes to obtaining relief. The ace in Sallie Mae's hand is they can file a judgement against you. The ace in your hand is this is not a guaranteed way for them to collect on the debt. It can be denied. Also, it cost money for them to file a judgement. If they can reach a settlement agreement without having to file a judgement, it's in their best interest.
Forgiveness by Negotiation
Just like most everything, Sallie Mae forgiveness has its own factors to consider. Length of term would be one thing to consider. Often times student loan forgiveness doesn't offer much in the way of lowering payments. What it does offer, though, is getting the borrower an agreement for a lower payoff. This is why length of term is an important factor. You might not save much, if anything, monthly but you will save a lot on the total payoff.
Even though you'll still have to make payments month after month, a shorter term is the plus side. Less payments - About half as many payments, so it's a big plus.
Typically, you can knock your debt out in about half the time by going through a forgiveness program. The main thing that will determine this is your outstanding balance when your debt is brought in. The larger the debt, the larger the savings. Sallie Mae loan forgiveness isn't a miracle worker, but it does offer the only realistic solution for some borrowers.
Reducing Monthly Payment and Payoff
Achieving a substantially lower payoff agreement on your own can be hard to do. The one advantage a debt forgiveness service brings to the table is the power of numbers. They settle many debts at once with lenders. By settling debts in bulk, they get lower payoff agreements. A good and reputable company will pass this savings on to you. They can save you as much as 50% to 60% including their fee.
Choosing a Service and Program
When considering a company that provides forgiveness services for Sallie Mae loans, make sure they are reputable. Also, make sure they are easy to deal with. This is important because you will be dealing with them during the programs duration. The company you choose to settle your debt is the main factor that determines how soon you will get the relief you need and knock out your Sallie Mae Loans.
Avoiding the Need For Forgiveness
Why allow yourself to be in this situation in the first place? The best way to avoid needing forgiveness is by exploring and taking advantage of as many options as you can short of taking out non-government backed student loans. Taking advantage of options like scholarships, grants and work-study programs can greatly diminish the out-of-pocket cost of your education.
For short term help, there are also options such as forbearance or deferment. These are worth checking into if your are not a candidate for loan forgiveness or debt management.
If you can afford your payments, but just want to get you loans paid off as fast as your can, look into using the debt stacking or the debt snowball method.
Can I Get Sallie Mae Forgiveness on My Own?
When trying to settle a debt on your own, the best starting place is to get insight from people who have done just that. One helpful article to start with would be 'How I negotiated with Sallie Mae/Navient to save $115K on my student loans'. In this article the author takes you through the process they went through directly with Sallie Mae to get, ultimately, $115,000 forgiven and settled off their debt. This is encouraging to anyone who has the time to try and come to settlement terms with them on their own.
It's not uncommon that Sallie Mae will make you a settlement offer once they know you are struggling, but it may be an offer that is too much in one or more ways. Lets say you are struggling to pay back a $100,000 loan. Let's say your payment is $750 a month and they offer you a settled payoff of $64,000 with $5,000 down and $700 a month for 84 months. This only helps if you can afford to pay $5,000 and a payment of only $50 less than your current payment after that. Sallie Mae loan forgiveness shouldn't only be a negotiation for a lower payoff, but it also needs to be something manageable for you.
Related - How to Lower My Private Student Loans
Forgiveness VS Consolidation - The Differences
Loan forgiveness and loan consolidation are similar in nature, but different in structure. They are both used for the purpose of lowering payments, payoff or both. Forgiveness, however, is designed for borrowers who are severely struggling to pay their loan/loans. Consolidation is for someone who can afford their payments; they may just want to pay less. They are struggling a little, but not so much that they need a relief or forgiveness program, just a lower interest rate and payment.
We Work With Other Unsecured Debts
Although Sallie Mae forgiveness is one of our main areas of our focus, we do offer programs for other debt type as well as other private loan lenders. Debt Settlement Consumer offers credit card programs, unsecured bank loan relief, business debt relief, etc. Whether you have many different kinds of unsecured debts or you're struggling with just one, we can help.
Navient, Discover, SoFi, and Wells Fargo Forgiveness are Also a Real Need for Many Borrowers
Navient and Sallie Mae are not the same company, but are often mistaken as such. Sallie Mae started Navient in 2014 to be the management and servicing side of federal loans and Sallie Mae remained the management side and servicing entity of the private loans. Many people that had loans with Sallie Mae now find themselves dealing with Navient. As a result Navient loan forgiveness has become a popular search like its counterpart Sallie Mae loan forgiveness. Discover, SoFi and Wells Fargo are also highly searched when it comes to forgiveness. Although these companies are not as large as Sallie Mae, there are thousands of borrowers across the US struggling with loans from these lenders as well.
The need for Sallie Mae forgiveness is a real need for many hard working Americans. Chances are this need is not going away anytime soon.
If you find yourself among the thousands of people in need of Sallie Mae loan forgiveness, do you research. There is a whole online encyclopedia of resources and information to guide you in obtaining the relief you need.
On the surface your financial struggle to pay your loans is the same as the other thousands of borrowers. Under the surface the reason you need help is unique. The amount you owe, the type of loan you have, your income, your credit score, etc. can all help determine which route of obtaining relief is best for you. Don't be discouraged, rather, be encouraged to dig until you find the best way to deal with your private student loans.
Check out some of our other debt related posts
Explore Federal Loan Options
These are not loans based on your credit and they offer more repayment options than private loans. Gaining forgiveness for federal student loans is easier than getting relief from private ones. Federal loans are typically more flexible in many ways. It's best to only take out private student loans when you've exhausted all other options. Not a full proof plan but all of these options can help you need Sallie Mae loan forgiveness in the future.
- Need Private Student Loan Forgiveness
- 4 Steps To Getting Private Student Loan Debt Relief
- How to Lower My Private Student Loans
- Can't Afford My Private Student Loans
- Private Student Loan Consolidation