Understanding Student Loan Modification Programs

Understanding Student Loan Modification Programs

The numbers should shock everyone. Almost 45 million adult Americans owe a combined total of $1.5 trillion in student loan debt. That adds up to one of every four adult Americans, possibly even yourself.

Help does exist.

Student loan modification comes in different forms with programs that apply to specific groups of borrowers. Federal student loan borrowers, for example, can qualify for forgiveness if they go into public service.  Federal government employment serves as one of the easiest ways to earn this type of forgiveness. Public school teachers can also receive forgiveness for their loans.

Hardship modifications also can help borrowers who earn low incomes or face special problems. Increasingly, private-sector lenders have developed programs that help their clients reduce their loan amounts while also assisting with repayment.

Recently, private-sector lenders have worked to create programs for student loan borrowers who have already gotten behind on their loans or expect to have difficulties soon. Attorney-based services can help those who may qualify have a better chance of acceptance into these programs.

Experts in student loan modification, such as Iron Fist, have helped many borrowers receive more advantageous terms on loan repayment.

What Is Attorney-Based Student Loan Modification?

Attorney-based student modification assistance is not the same as hiring a student loan lawyer.

A direct engagement with a student loan lawyer will require an expensive retainer. If the lawyer or law firm suggest filing a lawsuit, cost can exceed $100,000 with no guaranteed results.

An attorney-based service assists clients who have received threat of imminent action over their student loan debt. This could include a lawsuit filed by the creditor against a debtor, harassment from debt collectors, or some other legal issue.

Attorney-based student loan modification programs represent clients differently than a lawyer. Primarily, they help those who are in student loan trouble find helpful options. They can also assist the borrower in figuring out ways to approach creditors. Restructuring or otherwise modifying the loan contract can benefit all parties involved.

Attorney-based student loan modification experts also engage credit monitoring services to reduce or eliminate damage to your credit that can occur when you receive modified terms. At Iron Fist Legal, clients pay for a service that produces a significantly favorable resolution. This is typically a 30-70% reduction on their loan balance or wiping out the loan entirely.

What Does This Mean for The People Who Borrowed?

The emergence of attorney-based student loan modification has taken time to catch on among both debtors and creditors. For a long time, most believed that the student loan issue revolved simply around issuing a loan and paying it back. Both borrowers and financial services professionals now understand the extent of misrepresentation and fraud that has tarnished the process.

Also, increasing pressure from the federal government and other sources has nudged banks toward providing more help for borrowers.

Attorney-based student loan modification serves as a great way to help troubled debtors and their creditors find a way to resolve the problem in a way that benefits both parties.

For example, some higher education programs at both public and private sector institutions have oversold their programs. This refers to the fact that students receive false reassurances about the market for their degree program. In other cases, life has happened. The borrower has become disabled or has encountered a hardship that prevents them from meeting the terms of the loan.

In these and many other cases, attorney-based student loan modification can help. Many have found repayment evolve from a significant burden to a much more manageable situation.

So Who Qualifies?

The Attorney-based student loan modification program with Iron Fist Legal is for those who were misled by the school and/or those who struggle financially with student loans.  This includes but is not limited to the disabled, the underemployed, those who have endured a major life setback, those facing undue hardship as a result of the loan and those who were lied to.  Those who may also qualify for student loan modification include those who work for the government, have enlisted in the military, or serve as public school teachers.

Some specific student loan modification programs have emerged recently that target two particular groups. These include those who are between 30 and 119 days behind on their loan payments, as well as those anticipating a loss of income in the future. They also only apply to private-sector student loan borrowers. Iron Fist Legal is currently the only company that offers loan modification for Federal, Private and Parent Plus Loans.

One of the reasons why attorney-based student loan modification representation is vital lies in the fact that qualification is not cut and dry. Wells Fargo, for example, evaluates each application on a case by case basis. Discover has started an interest-only repayment program that can substantially reduce monthly payments.

While private sector lenders have grown more open to helping borrowers, they generally do not release qualification criteria.

What’s the Difference Between Forgiveness, Consolidation, and Refinancing?

Many people confuse loan modification with other forms of adjustment, such as forgiveness, consolidation, and refinancing.

Consolidation takes several different loans from various sources and combines them into one federal student loan consolidation. It can work with only federal loans or a combination of government and private. The law prevents the government from consolidating entirely private-sector loans.

Forgiveness refers to the wiping away of some or all student debt. The federal government offers forgiveness programs to those working for the government or as a teacher. Military service can also help to reduce or eliminate student debt.

Refinancing refers to getting monthly payments or interest rates reduced, generally in exchange for a longer payment period.

Loan modifications available through attorney-based efforts can wipe out the entire loan.

What Banks Are Offering Student Loan Modifications and Why?

Banks that currently offer student loan modification programs include Wells Fargo, Discover, PNC Bank, and Sallie Mae. They include many of the same general terms, but do not disclose specific criteria.

Although these banks have responded to public and government pressure to help alleviate the student loan debt issue, modification also benefits them. Those encountering repayment problems are more likely to continue paying with improved terms. Inability to pay will result in default, after which the chances of repayment in part or full drops considerably. Iron Fist Legal will negotiate substantially better terms for your modification with private lenders.

Wells Fargo

Modification programs from Wells Fargo include the reduction of interest rates to as low as one percent. Depending on the status of the borrower, this could either be done on a temporary or a permanent basis. Other borrowers could see a reduction in monthly payments to ten to 15 percent of their monthly income. For many, that dropped their payments by almost one third.

Cutting interest rates and monthly payment percentages brings Wells Fargo repayment into the same ballpark as federal student loans.

As of 2015, Wells Fargo also extended many loan repayments by as long as five years, lowering monthly payments.


Discover Financial Services offers several programs to help borrowers in financial trouble and in danger of default. These include:

  • A three-month postponement of repayment for those in their first three months of repaying loans
  • Allow borrowers to bring their loans back to current status by paying the equivalent of three months of loans in a 90-day period
  • For those experiencing financial hardship, Discover offers forbearance. This can extend the loan for up to a total of 12 months during the life of the loan. Borrowers cannot receive the full 12 months consecutively.
  • Borrowers experiencing hardships can apply for an interest rate reduction for up to 12 months. This will help to drop the minimum monthly payment amount.

Sallie Mae

Sallie Mae also offers a series of options for those who have a difficult time paying their loans.

They have a forbearance plan which the customer service team can easily set up. They can run for up to three months at a time, but not exceed 12 total months through the life of the loan. Interest will continue to accrue, adding to the total repayment cost of the loan.

Deferments are available for those returning to school, taking an internship, or pursuing other educational opportunities.

PNC Bank

In 2015, PNC Bank reduced the interest rates for approved borrowers experiencing financial difficulties. They could qualify for a rate as low as 0.6 percent, which can reduce a monthly payment significantly. Borrowers can enjoy these rates for as long as 18 months.

Banks have purposefully left much of the criteria undisclosed for a reason. It provides their administrators wiggle room to make determinations individually. An attorney-based student loan modification service understand how the process works. A firm such as Iron Fist can help a bank better understand why it benefits both creditor and debtor to modify the loan temporarily or permanently.

Why Consider Attorney-Based Student Loan Modifications?

Iron Fist Legal gives student loan borrowers a better chance of getting a modification of student loan repayment conditions.

Not every student loan modification is based solely on the borrower’s financial struggles. Increasingly, more borrowers have received modification help based on other important considerations such as:

  • Misleading information about salaries and job placements from an institution of higher learning
  • The student felt misled or coerced into taking larger than needed loans
  • Illegal circumvention of loan protocols
  • Misled about forgiveness or other modification programs
  • School closed or lost its accreditation

Many other situations could enable borrowers to obtain a modification. Attorney-based student loan modification experts know the law. They also have familiarity with how higher education and related lending work, giving them the inside track to helping clients like you to cancel the contract, lower payments, reduce the balance, and help to rebuild your financial status.

Can My Federal Loans Be Forgiven, Cancelled, or Discharged?

The US Department of Education offers fairly limited terms under which they will forgive, cancel, or discharge a student loan. The terms generally mean the same thing, a reduction or elimination of the loan. Each takes place under different circumstances, however.

Forgiveness and cancellation usually apply when loans get reduced or canceled as a reward. For example, you can earn forgiveness and cancellation when you work for the federal government or enlist in the military.

Dischargement occurs as a result of financial hardship. Currently, discharges of federal student loans happen only in cases of complete disability or when the school attended has closed down.

While difficult to obtain, federal student loan modifications are far from impossible. Also, hundreds of student loan modification lawsuit take place every year. A judgment in any one of them could affect your ability to get modifications that will help you to more easily repay.

How an Attorney-Based Student Loan Modification Service Can Help You

Iron Fist Legal has the experience, knowledge, and expertise to fight for clients looking to modify or cancel their student loans. Loan modifications, including cancellation, are possible with both public and private lenders.

Iron Fist Legal engages with lenders directly to give you every possible edge in making your case for modification. We also keep track of all student loan-related civil cases, ensuring that case law changes in your favor gets applied properly.

Reach out Today

Are student loans weighing down your finances? Is the burden of a monthly payment growing too large to bear? Do you anticipate future financial problems that could hurt your ability to repay? Already in default?

Don’t worry, there IS a solution. Contact Iron Fist Legal today.

If you think you are eligible for our services, take action and contact us today.

If you are eligible we guarantee to reduce your student loan debt by 30% to 70% and in some cases have the loan completely cancelled.

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