Comments on: Is It Possible To Settle Student Debt For Less Than You Owe?

By: Robert Farrington

Robert Farrington — Fri, 10 Apr 2020 02:00:21 +0000

In reply to Aaron.

You can try, but our experience has seen that it’s rare unless you’re in default. And if you’re not in default and plan too – it’s a cruel joke. You usually see a large amount of collection fees and interest added to your loan, so by the time you settle for 50% less, your loan has grown by that much and you’re back to where you started.

But it is a different time right now. You need to have the money to settle. Do you have that kind of money right now?

By: Aaron

Aaron — Thu, 09 Apr 2020 20:33:10 +0000

Hello,

I have about $30k still owed to Navient on a private loan that had original principal of $30k and I have already paid $40k towards it over the last 10 years. I want to try to settle a lump sum pay off for $15k, because I just can’t fathom paying the remaining still owed of $30k. That would $70k on an original loan of $30k. Thats sickening. Is this settlement idea possible? Any suggestions? Any help is greatly appreciated!

Aaron

By: Robert Farrington

Robert Farrington — Sat, 21 Mar 2020 17:54:27 +0000

In reply to Shannon Flynn. I would speak to an attorney that specializes in student loan debt first. Your private loans follow different rules than the federal loans, and you may have recourse there with your loans. Second, if you are totally and permanently disabled, you might consider going to get your loans discharged that route.

By: Shannon Flynn

Shannon Flynn — Sat, 21 Mar 2020 04:29:47 +0000

I have not logged in to the government’s official site so as to avoid recognition, acknowledgement and the assumption of a clock. Zero contact from any creditors in default for decades on both federal and private loans which have since reported as closed and aged off my credit report. Last year I was named as a beneficiary and received an unforeseen inheritance. The estate’s attorney didn’t see any need for special provision for the funds since they weren’t considered taxable income. I am ashamed to say that my
loan debt went unmentioned in that meeting and personally unrecognized as a potential issue until recently. I am unemployed, unable to work due to disability but haven’t applied for SSI, preferring instead to budget my bank account and adhear to doctor recommendations to eventually return to work in a related field.
After reading your sound advice to others I see the fault in my avoidance, direct address in order to get out of default as being the only solution. Could you please give me the order of steps that i should take in my situation since i have a mix of private and federal loans? Once I make contact am I in danger of a levy on my bank account? Worst fear: Does the Department of Education make it their practice to sieze funds directly from a bank account in the interim as you’re trying to get on track?

Thank you very much for your assistance and advice in this matter, it is greatly appreciated.
Shannon

By: Robert Farrington

Robert Farrington — Thu, 20 Feb 2020 04:48:35 +0000

In reply to Tracy Christensen. Do you have that money? Chances are probably 30% they will take your settlement offer. And of that $4,600, maybe $3,000 will go to your loans after fees and collection costs. If you have that money, you should rehabilitate the loans, get out of default, back on a repayment plan, and then throw that money at your loans to pay them off. This will also get the default off your credit report.