Negotiation Letters Will NOT work on Student Loans
Student loan creditors such as Nelnet are required by law to report accurate information to credit agencies. This makes dealing with late or defaulted student loans much different than other accounts. Basically, regardless of if you have consolidated, or even undergone a rehab program, the record will remain on your credit report for 7 years.
You can read why student loans cannot be included in a bankruptcy on the ed.gov website for the specific legal mumbo jumbo.
Most other accounts CAN be negotiated
…if you go about it the correct way. I wrote about the best way to negotiate charge offs, late payments, and collections in this article about removing negative credit report entries.
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7 Responses to “Negotiation Letters Will NOT work on Student Loans”
By Lynn on Nov 23, 2007 | Reply
What do you mean by “rehab program”????
By Ryan on Nov 23, 2007 | Reply
Loan Rehabilitation is a program offered by the government for people who have defaulted on their student loans… see this website for more info: http://www.ed.gov/offices/OSFAP/DCS/rehabilitation.html
By Lynn on Nov 23, 2007 | Reply
Ah, I see. Thanks Ryan!
By MerrY on May 16, 2009 | Reply
I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future.
By CreditMaster on Jun 9, 2009 | Reply
Nice information. I think, Students suffering from bad credit loans should find a co-signor in advance who knows them, trusts them and is willing to sign a promissory note with them. Also make sure the co-signor has very good credit.
By David on Jun 11, 2009 | Reply
I have tons of blog themes and have not seen one like yours before, I like it.
By Interested on Dec 6, 2009 | Reply
The occasion is exactly what it sounds like. Part of the problem that has been created was due to the sub prime crisis that was created when major banks started to issue lots of risky credit, and then insured those loans with credit default swaps. The bank doesn’t care about your situation. I, affectingly, have to be necessitated to sympathize with mortgage refinance online.