Federal student loan debt should not be allowed to go on default, but if this will happen, settlement should be planned, and this will free the student borrower from encountering several future problems, according to Bruce Mesnekoff. As founder and Senior Partner of The Student Loan Help Center, many student borrowers who had problems on their student loans received help and solutions regarding their student loan debts and efficiently managing repayments. Student loans on default will have a great impact on the lives of the student borrowers, especially when wage garnishment is done by the lender, and they don’t even need a court order for this. Garnishment can even include tax refunds and other Social Security benefits the student borrower has. However, filing for bankruptcy may also be not the right option because there can be a solution to this student loan debt problem.
According to Bruce Mesnekoff, the nationally recognized expert on student loan management and consolidation, borrowers struggling with their student loan debts can have various options with regards to settlement of their loan debts. Settlement can be a good option, rather than filing for bankruptcy, although the student borrower will need a huge sum for this. The overall aim is to have a reduced payment amount for the student loan debt, and the negotiating skills of the student borrower will play a good role in this situation, according to Bruce Mesnekoff. This can also be a situation where the help of the experts is greatly needed, in this particular regard.
Filing for bankruptcy can be with great impact on the credit standing of the student borrower, and this can be of little help. What can be better done is talking with the loan agency or collector and negotiating for discounts on the loan payment to be made, according to Bruce Mesnekoff. Getting help from the experts can also be better done in this situation. There can also be other options like loan consolidation, which can also be of great help. The monthly amount of repayments can be much lower if this is approved and interest rate also changed and loan term extended, although the total amount paid can be higher. What is beneficial to the borrower though is that monthly repayment is already affordable.
What is important is that no wage garnishment is done and the student loan is paid in small and affordable payment amounts. The student borrower will not be placed in a more severe financial difficulty and the loan debt is paid based on financial capability. This will need the help of the experts, to place everything in its proper place, per Bruce Mesnekoff, the expert in this matter.