A case out of California by attorney Greg Fitzgerald’s firm Fitzgerald & Campbell caught my eye. In this case NCSLT settled a $38,918 debt for $15,200 and allowed payment interest free over 9.5 years.
It always amazes me the number of time NCSLT sues consumers over debts only to have people give up and lose by default. There are plenty of NCSLT wins and even some for higher settlements at times.
The hardest part is not if there are good opportunities to settle student loans but that it is very hard for people to find an attorney who is experienced in this area.
I asked Greg for some feedback on the case. He said, “They hired us and we naturally beat all that back and ultimately settled. Attached is the stipulation for judgment where the terms are $132.18 per month from 6-20-17 to 11-20-26 and a final payment of $131.18 (that’s $15,200 interest free over 9.5 years!)
The thing about these NCSLT cases is that we actually think we can win them. The problem is, we naturally can’t guarantee that. So when an offer such as this comes along, the client has to decide: do they try the case, hoping for a victory that I cannot guarantee, or do they make the very affordable interest free payment on a reduced amount? Most people acknowledge they owe something and actually want to pay something. Most times the only reason they defaulted in the first place is because the private student loan lender is totally unreasonable on the payment amount (let alone the total balance due amount). This is why I generally encourage consumers default on private student loans if they cannot afford the payment (which needs to be fixed) and/or have no definitive term (# of payments).”
Geg stands behind his position on strategically defaulting with a plan. He’s also the same attorney who contributed Top 10 Reasons You Should Stop Paying Your Unaffordable Private Student Loan.
And besides settlements as the result of a court case, settlements are available for private student loans without being sued. You just need to know what to do.