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LegalKnowledge
LegalKnowledge, Attorney
Category: Legal
Satisfied Customers: 26747
Experience:  10+ years handling Legal, Real Estate, Criminal Law, Family Law, Traffic matters.
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What are my options in nagotiating the fes and penalties on

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What are my options in nagotiating the fes and penalties on my defaulted student loan. I am being charged $7768. On a $31,747 loan. I have been unemployed nearly three years and under employed since graduating in 2007. Do I have any recourse. Thank you. XXXXX XXXXX
Hi! I will be the professional that will be helping you today. I look forward to providing you with information to help solve your problem.

Good morning. I certainly understand the situation and your concern. When was the last time you made a payment? Also, you mentioned you were offered a program? Was this through the lender or a third party?
Customer: replied 3 years ago.
Last payment was August for $900. This is a third party lender is Permiere Credit off North America, LLC
Mike, thank you for the additional information. Fees, costs and interest added, is always negotiable. It is at the discretion of the lender to reduce or even waive these, if something can be worked out and a settlement can be put in placed. The lenders primary concern is recovering the principle which they loaned. It is not uncommon for them to agree to reduce or waive any other fees, if a borrower was willing to make a lump sum payment, to settle this. The problem which you may run into, based upon what you stated above, is that you can not make a large payment at this time. As such, you may want to speak with the lender about your hardship and see if they would agree to a payment plan with you, at least allowing you to make payments to go towards any interest and fees, so they do not continue to be added on to the debt. Then, once this are paid off, the payments can go towards the principle and the agreed upon interest. The lender is not going to reduce or waive these unless a payment plan is set up and they should be willing to do this. You need to share with them what you can afford to pay, so they can recognize your efforts and start accepting the payments. Often times, principle is deferred and you just pay the interest, to keep the debt from increasing. If a third party is looking to help and are asking for over $7,000 in fees, you can certainly make a counter offer to them, for less, if you want to use their services.

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Customer: replied 3 years ago.
Do you know if renegotiating repayment is well received. How much resistance can I expect.
I think it is actually welcomed by the lender. They want their money. As such, any effort you make to try and give it to them, along with a payment plan that both parties are comfortable with, should be accepted. Regardless, the money is going to need to be repaid or else they will sue you and obtain a judgment. They would rather not have to go through the legal process of doing this, so they will be open to all reasonable offers to resolve this.
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