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I Want to Settle My Private Student Loan Debt But Not Hurt My Credit

Written by Steve Rhode


Dear Steve,

I have about $150,000 of Navient private loan debt. How do I settle debt for private loans with Navient–settle to a lower amount and pay it off quickly if possible? Also, I don’t like Navient and I hate ACS, I hear great lakes is better–should I switch and how? please help. they just raised interest rates on my private loans again now to 5.75%.

I have the money to pay off 50-60% of my private loan debt right away. However, I don’t want to get sued or destroy my credit.



Dear Omid,

With private student loans you can’t switch your servicer. So that’s handled.

And while it it absolutely possible to settle Navient private student loans, it is impossible to do it without taking a credit report hit. So if that is your mandate then it is not possible.

However, if you did want to move forward I would suggest you arrange a consultation with the independent debt coach Damon Day. I would classify Damon as an expert in advising individual people how to handle Navient private student loans and he can give you specific advice based on your individual situation.

And if you did decide to move forward and take the credit hit, it is always possible to rebuild your credit. Really the choice that you must ponder is if you want to eliminate your private student loan and take the short term pain.

I’m not suggesting it is either a good or bad thing to do but instead that it is a strategic consideration that can only be resolved after contemplating your unique set of facts.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.


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