If you have been researching your repayment options for student loans, you probably know that only federal loans offer modification options, such as income based repayment. Historically, most private lenders have not offered any sort of modification and have a reputation for not working with customers who are having difficulty repaying their loans.
That may soon be changing. Two private lenders, Wells Fargo and Discover Financial Services, have announced that may soon be offering modification options to customers who are dealing with financial hardship.
Wells Fargo has said they will consider lowering the interest rate for someone who is having financial trouble. They have also said that the loan doesn’t need to be in default to qualify for a modification. The reduction of interest may be temporary or permanent.
Other lenders have also stated that they will start offering modifications. You can read more here.
If you have questions about how to deal with student loan debt, including how bankruptcy may be able to help, we hope you’ll come in for a free, no-obligation consultation with an experienced Colorado bankruptcy attorney. You can schedule an appointment by calling 303.331.3403 or by using our online scheduling system.