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April 21, 2015

Best Student Loan Relief Options for 2015 & 2016

student loan debt statistics, infographic

Student Loan Debt, bigger problem than Credit Card Debt in the United States. This infographic illustrates stunning student loan debt statistics

This page will teach you how to resolve Private and Federal Student Loan Debt: 

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As eager as you may be to escape the stress of overwhelming student loan debt, don’t get caught up in a scam. You know the old saying, if it’s too good to be true, then it usually is! Today we will take a closer look at legitimate options to resolve private and federal student loans, and how to avoid student loan relief scams.

Federal Student Loan Relief Options:


Getting approved for the right program payment is essential, if you want to stay current and eventually have everything paid off!  It is easy to get stuck in a payment that is NOT affordable! Part of getting approved for the lowest payment, is inputting the right mathematical formula that Federal Student Aid will not disclose and the process can be confusing.

Student Loan Options

To Find Out What Plan You Qualify For CLICK HERE (Call 866-376-9846)


Standard Consolidation Plans can leave you with a high monthly payment.

Golden Financial Services can process your consolidation and ensure that you get approved for an affordable payment.

Student Loan Consolidation Example Letter

A Successful Student Loan Consolidation Case.

OPTION ONE:  Income Based or Pay as you Earn Hardship Consolidation or Repayment Plan Requests:

Your federal loans can be paid off in full through consolidation, and you would then be left with one comfortable monthly payment, sometimes as low as zero-dollars per month.  What’s zero dollars per month, times 300 payments? You got it! That equals $0 paid towards your new loan balance, and now you are eligible to have the rest of your balance forgiven.

These programs can be phenomenal if you have a hardship and low income.

A common problem:

A common problem that I see is when student’s request forbearance or deferment over and over again thinking that it solves their problem, but in reality you are still getting charged interest and the debt is only becoming larger. Really you are medicating a sickness that needs to be addressed.

Why not consolidate on your own?

Consolidation is something that you can do on your own, much like filing your own taxes and fixing your own car, but it can be confusing, timely, mistakes can happen and annually you must resubmit your repayment plan paperwork if you are on an income based program and get re-approved. If you forget to reprocess your repayment plan one year, you may be kicked out of the plan and automatically placed in a payment that is NOT AFFORDABLE!

Also, getting your balance forgiven, is not an automatic process that just happens on it’s own, you have to execute this action just like anything and make sure that your payments are being credited properly prior to the time that you are eligible for loan forgiveness. 

Loan forgiveness options and potential tax consequences:

Also, it is important to understand loan forgiveness options. With this option, if you do get your balances forgiven after a certain number of payments, there could be tax consequences.  These consequences can be dealt with by using a form #982 basically showing the IRS that you are insolvent and it’s not income, excusing you from having to pay taxes on the savings. This same form is used by our debt settlement clients that have their credit card balances reduced.

Why use a student loan relief company like Golden Financial Services?

Reputable companies that offer student loan assistance will handle all communication between you, the Department of Education and your loan servicer, along with handling all paperwork, annual processing and your loan forgiveness at the appropriate time. A reputable company understands this process.

Do you have a Public Service Job?

If this is the case, you may be eligible for loan forgiveness in half the time. (around ten-years)

Can I consolidate an existing consolidation?

You can consolidate an existing consolidation loan even if you aren’t in default if you include at least one other FFEL or Direct Loan in the consolidation.


If you are in default on your existing consolidation, you can consolidate it again, without including another loan.

If you are delinquent on federal student loan payments, how can I get them paid off in full and all the negative marks removed from my credit?

Can I still consolidate with bad credit? Is there bad credit consolidation available? 

It does not matter if your credit score is in the 500s or 800s, you can consolidate no matter what your credit score is. 

If you are Delinquent on Your Current Payments, Consolidate and Get Negative Marks Removed From Credit

Join a Rehabilitation Program and then Consolidate or just Consolidate immediately and then use a credit restoration service –  with the rehabilitation program you must first negotiate with your lenders to obtain a feasible payment, and then you must make 9 consecutive payments on the new negotiated payment terms. (must stay current on the payments)

After 9 consecutive payments, you can then consolidate your loans and the negative marks will be removed from your credit at that point.

What if I don’t want to do the rehabilitation program, can I still consolidate and somehow get the negative marks removed from my credit?

If you just consolidate defaulted loans, the defaulted loans will get paid off and reported “paid in full”, but the negative marks will remain on your credit. Often we have clients that will then use a credit restoration service and they have had success with getting the marks removed at that point, which direction you take is your prerogative.  Using a credit restoration service will not guarantee that the marks will come off your credit, and therefore going this route is taking a chance if you are needing all of the late marks removed from your credit report.

Delinquent Private Student Loans: Learn Your Options!

Debt settlement – settle your balances for less than the full amount owed. Read more on debt settlement for private student loans by Clicking Here.

Debt validation – challenging the legal authority of a third-party debt collector’s right to collect on an alleged debt. This option has proven success for thousands of students, due to the fact that debt collection companies will purchase student loan accounts for as low as 5 cents on the dollar and they often don’t get complete records or accurate information on a consumer’s behalf, making it near impossible for them to verify and validate an account if challenged. Read more on debt validation for private student loan debt by CLICKING HERE.

TAKE A LOOK AT THIS DEBT VALIDATION EXAMPLE – addressed a third-party debt collection account, who was originally with Citibank.

It doesn’t matter if you had Chase Private Student Loans, Bank of America Private Student Loans, Citibank Private Student Loans, Navy Federal Private Student Loans, once they are purchased by a third-party debt collection company debt validation can be your next step!

debt validation letter illustrating success

Successful debt validation case for private student loan debt


How to Avoid Student Loan Relief Scams!

–  Make sure the company offers a written guarantee, basically saying that if they don’t get you approved for the program they’re quoting you on, you pay nothing.

–  Check their BBB rating and make sure they have a positive track record including no complaints and a good rating.

–  Check the company’s online reviews. Debt relief companies either have positive or negative reviews online and it’s easy to find them! Do they have positive or negative reviews on Google?

This article discusses federal student loan statistics and student loan relief options for federal student loans.
600 Palm Ave #221
Imperial Beach , ca
Phone: 866-376-9846
Fax: 619-773-0901

Learn more about private and federal student loan relief options by contacting Golden Financial Services at 866-376-9846.


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