Subscribe to our mailing list

X

How Can I Get Help Lowering My Duke University Student Loan Payments?

By on January 23, 2018

Question:

Dear Steve,

Duke MBA grad, living abroad, Non-US citizen or resident, owing $196,000 to a Credit union in NC. Duke University is my co-signer. Monthly expenses are $2,000 over monthly income. Student loan payments of $1,560 represents 52% of monthly income (around $3,000)

Outstanding balance: $196K
Monthly payments : $1,562 (fixed)
Interest rate: Prime Rate + 5%
For example 8.25% in 2015, 9.50% in 2018
Number of monthly payments: 300 (and increasing due to higher prime rate)
*Prepayments allowed but will reduce # of payments, not monthly payment

As an international, what are the consequences of defaulting? I’d like to pay off and avoid default. What better terms could I negotiate?

Thanks!
Luis

Answer:

Dear Luis,

I’m surprised Duke University is your cosigner, I thought they’d never get involved in something like that.

In reality, the consequences of defaulting are minimal if you are not planning to live and work in the United States again. You will be able to come and go from the United States without any issues as a result of the defaulted debt.

But if Duke really is a cosigner I would first talk to your financial contact there and explain your situation. They may be able to help you work towards a lower payment. At the very least I’d give them a chance to intervene before you just default.

Defaulting on unaffordable private student loans, like yours sounds like, can actually open the door to negotiating a settlement where you would repay less than you owe to satisfy the debt.

If you do default you need to be aware the credit union can report your debt as a delinquent debt to U.S. based credit reporting bureaus, they could always sue you in the United States, and get a judgment against you that would earn additional interest which could be collected if you moved back to the United States to live and/or work.

READ  The Credit Union Won't Lower My Son's Student Loan Interest Rate

So the bottom line is to talk to Duke and confirm they are a cosigner. If they are, ask for their help reduce the payments. If they are not and you stop paying the debt the credit union may eventually be open to negotiating a settlement. Different creditors have different policies when it comes to settlements.

If you want some outside assistance in working with the credit union to feel more comfortable you are getting a reasonable settlement offer, consider contacting a third-party or my debt coach friend Damon Day.

morehelp1
Choice1 Choice2 Choice3 Big Hug!
Get Out of Debt Guy - Twitter , G+ , Facebook
If you have a credit or debt question you'd like to ask just use the online form .

Last step, fill out the information below or call us for Priority Assistance.

What problems are you having with your report?

Your first name is required. Your first name is required to be at least 2 characters. Your first name cannot be longer than 50 characters.
Your last name is required. Your last name is required to be at least 2 characters. Your last name cannot be longer than 50 characters.
Your email is required.
Your phone is required. Your 10 digit phone number is required.
Your state is required.
Your age is required. Your age must be greater than 18. Your age must be less than 100.

By clicking on the "Contact Me" button above, you consent, acknowledge, and agree to the following: Our Terms of Use and Privacy Policy and to receive electronic communications. We take your privacy seriously. That you are providing express "written" consent for Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS - charges may apply), even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list. Consent is not required as a condition to utilize Debt.com services and you are under no obligation to purchase anything.

By clicking on the “Contact me” button above, you consent, acknowledge, and agree to the following: (1)That you are providing express “written” consent for Lexington Law Firm, Debt.com or appropriate service provider(s) to call you (including through automated means; e.g. autodialing, text and pre-recorded messaging) via telephone, mobile device (including SMS and MMS – charges may apply), or dialed manually, at my residential or cellular number, even if your telephone number is currently listed on any internal, corporate, state or federal Do-Not-Call list; and (2)Lexington Law’s Privacy Policy and Terms of Use and Debt.com’s Terms of Use and Privacy Policy. Consent is not required as a condition to utilize Lexington Law or Debt.com services and you are under no obligation to purchase anything.

About Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

One Comment

  1. Luis

    January 23, 2018 at 10:02 am

    Asked question about defaulting on Duke University student loan debt.

Share a Comment / Leave a Reply

%d bloggers like this: