My Navient Private Student Loan Debt Seems Criminal


Dear Steve,


I have about $30k still owed to Navient on a private loan that had the 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 be $70k on an original loan of $30k. That’s sickening.

Is this settlement idea possible? Any suggestions? Any help is greatly appreciated! Oh, I do have a cosigner on this as well if that affects things.

The amount they are making seems criminal!



Dear Aaron,

It can certainly feel “criminal” when you realize how much a loan can end up costing over a long period of time.

Private student loans can greatly accelerate if you take any time off making the regular monthly payments. For example, any forbearance just blows the thing up with added interest. Lenders offer those payment holidays with abandon it seems.

Sadly, it’s not criminal to follow the contract you and the cosigner agreed to when the loan was taken out. I tend to find Navient gives poor advice when it comes to things like payment holidays or forbearance but does tightly follow the letter of the contract.

So for the sake of math, let’s look at what a 20-year private student loan would cost at 7% interest.

With a starting balance of $30,000 and monthly payments of $232.59 you would pay off the loan in 20 years and pay $25,821 in interest. And that’s a loan without any payment holidays.

The fact you have a cosigner complicates things. Your payment history on this loan and the actions you take will directly impact the cosigner. If you settle the loan and don’t know what you are doing you might find the cosigner still on the hook.

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It is possible to settle Navient private student loans. But you absolutely need to be aware of the risks and how to best deal with your specific situation.

In the strongest terms, I suggest you talk to debt coach Damon Day and make sure you and the cosigner have all the information to make a smart and informed plan of action.

Knowing all the facts and what is possible in your specific situation, I have seen Navient settle these private student loans.

Let me give you an example of someone who did not know what they were doing and just emotionally reacted using assumptions. A cosigner on a Navient private student loan called and negotiated a settlement. What they didn’t realize was the settlement was only for the cosigner. For just a bit more the borrower would have been released as well. But because they didn’t know what they were doing, the borrower was left holding the balance of the loan.


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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Damon Day - Pro Debt Coach

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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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