Private Loan Settlement
Private student loans don't have government protections — but they also don't have government rigidity. Banks and lenders negotiate. Our attorneys know how to make them, and have settled millions in private student debt for borrowers who thought they had no options.
Strategies available to you
Private student loans come from banks and financial companies, not the government. That means you lose access to income-driven plans and federal forgiveness. But it also means lenders have more flexibility to negotiate. Private lenders would rather get paid something than pursue you indefinitely — and our attorneys use that reality to your advantage.
Our attorneys contact your private lender directly and negotiate a reduced payoff amount on your behalf. Lenders — especially when accounts are delinquent or in default — regularly accept lump-sum settlements for significantly less than the outstanding balance. We handle every call and every letter. — Lender negotiation
When a borrower cannot repay the full balance, a formal debt settlement allows both sides to agree on a reduced amount that fully resolves the obligation. Once the settlement is accepted and the agreed amount is paid, the remaining balance is forgiven and the account is considered closed. — Balance reduction
If your private loans are already in default, collection activity, lawsuits, and wage garnishment become real risks. Our attorneys step in to stop the escalation, resolve the default through negotiation or settlement, and protect you from legal action while pursuing the best possible outcome. — Default & collections
Many private lenders offer internal hardship programs — reduced interest rates, temporary payment deferrals, or modified repayment plans — that are not advertised publicly. Our attorneys know which lenders have these programs, how to request them, and how to document your situation to qualify. — Payment relief
Private lenders and debt collectors must follow strict federal and state rules. When they don't — illegal calls, inaccurate debt amounts, improper lawsuits, or violations of the FDCPA — you have legal rights. Our attorneys identify violations and use them as leverage in negotiations or as direct legal claims. — FDCPA defense
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The process
You don't negotiate with lenders alone. Our attorneys handle everything — from the first call to the final written agreement.
We assess your full private loan picture — balances, lenders, payment history, and status — and identify which strategies apply: negotiation, hardship program, FDCPA defense, or settlement.
Every lender is different. We develop an approach based on the lender, your account status, and your financial situation — including identifying any collection violations that can be used as leverage.
Our attorneys contact the lender directly. Having an attorney involved changes the dynamic — lenders know we understand the law, can dispute inaccurate claims, and are prepared to act if they don't negotiate in good faith.
Once an agreement is reached, we review the terms, confirm everything is in writing, and make sure the settlement is properly documented so the forgiven balance cannot be collected again.
Real results
$50,000
"I'd been in default for two years and thought there was no way out. They negotiated the full balance down and I paid a fraction of what I owed. It's over." — Marcus T. · Private loan borrower · Settled 2024
$34,000
"Sallie Mae had already referred the account to collections. The attorneys stepped in, stopped the calls, and settled the account for much less than I owed." — Dana R. · Graduate school borrower · Settled 2023
$31,000
"They filed a lawsuit against me. The attorneys found violations in how the debt was collected and got the case dismissed. I still can't believe it." — Kendra M. · Private loan borrower · Case resolved 2024
Common questions
Yes. Unlike federal loans, private student loans are held by banks and financial companies that have flexibility to accept less than the full balance. Settlements in the range of 40–70% of the outstanding balance are common, particularly when the borrower is in default or facing financial hardship.
If your loans are already delinquent or in default, your credit has likely already been affected. Settling stops further collection activity and may actually improve your credit trajectory over time. Our attorneys discuss the full picture with you before any action is taken.
Do not ignore a lawsuit. Contact us immediately. Our attorneys can respond on your behalf, negotiate a settlement before a judgment is entered, or defend against the suit if there are grounds to do so — including violations of federal debt collection law.
Federal loans are held by the U.S. government and generally cannot be settled — but they have other relief options like income-driven repayment and forgiveness. Private loans are held by banks and companies, which means they can negotiate. Settlement is a private loan strategy.
Yes. Many of our clients have both. We pursue settlement for the private loans while simultaneously reviewing your federal loans for forgiveness, income-driven repayment, or other programs. A single free review covers your full picture.
Lenders treat attorneys differently than individual borrowers. An attorney can identify illegal collection practices, dispute inaccurate debt amounts, invoke legal rights you may not know you have, and apply pressure that individual borrowers simply don't have access to. The difference in outcome is significant.
From the blog
Settlement
Learn exactly how attorneys negotiate private student loan settlements — from default assessment through final agreement, tax implications, and credit reporting outcomes.
Settlement
Lender-specific private student loan settlement tactics for Navient, Sallie Mae, Discover, and other major servicers — what they require, how they negotiate, and what to expect.
Settlement
The Fair Debt Collection Practices Act gives private student loan borrowers powerful rights against illegal collection tactics — and violations create real leverage in settlement negotiations.
Your lender isn't going to offer you a deal on their own. Our attorneys have negotiated with every major private lender and know how to make them move. Find out what's possible with a free review — no obligation, no upfront cost.
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