Thank You So Much For Inspiring Me to Stop Paying My Private Student Loans


Dear Steve,

Many years ago, I came across your content, and it inspired me to stop making unreasonable payments on my ridiculous private student debt and start living my life!

Your content pushed me to default intentionally, and I can enjoy my life more, travel internationally and domestically, go out to eat, enjoy life!

It’s Christmas Eve, and I just wanted to say thank you because you really did play a role in helping me change my life for the better about 5 years ago.

I hope you never stop giving this good (although controversial) advice to people in a similar situation.

Merry Christmas.



Dear Larissa,

Thank you so much for coming back and posting a holiday update.

I went back and looked for the original post and found it here.

What is interesting is that it was answered by Michael Bovee, who actually said, “Making the decision to strategically default on your private student loans is not necessarily going to improve your situation. I speak with many borrowers who can relate to the feeling of just treading water, and often worse, they are unable to stay financially afloat. And while having the extra cash flow is going to provide a bump to your month, it has costs that should be considered too. I am not here to deter you. The decision to default on student debts is often one that is made for us. But be sure you are thinking long term.”

Now I have been critical of the problems created by private student loans and the limited options. See this post on why it can make sense to strategically default on some loans.

I would hate to give people the impression that I think people should rush out to default on their private student loans. That is not my position.

However, I do think that when people are facing impossible situations, the private student loan lender is unwilling to help, and there is no way to afford the minimum payment that other options need to be considered.

One of those options is to stop paying the private student loans when you can’t afford the minimum payment the lender will accept.

But that’s more a function of math than a whim. It is a path embarked on after careful consideration and when no other option is logical or sustainable.

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

I think you and I should be clear to anyone reading this in the future, defaulting on your private student loans has consequences. You will be in collections, and you may be sued over the defaulted debt, which will negatively impact your credit score. Defaulting is not just walk in the park if you are unaware of the negative potentials.

However, if you decide to default on the private student loan debt intentionally and you are willing to negotiate with the lender in the future, you can settle the debt for about half or less and often with monthly payments over several years.

I’m thankful for your gratitude and happy you found a way forward in your life. You decided on a path you feel comfortable with and works best for the way you want to live your life. That’s awesome.

People will have many different points of view about the situation. Some will be critical of your choice to default on the debt and find happiness. Others will say lenders are evil and deserve to be stiffed. I know for certain that I believe people have many different and valid points of view due to their life, experiences, and situations. I actively strive to not judge people by the positions they hold but to help everyone understand the situation so they can make good choices.

I can’t make the choice that is right for you, but I can give you and other readers factual and honest information from which you can make an informed decision, and it seems that is what the Get Out of Debt site has been able to do for you. And that is a good thing.

As long as I can, I plan to provide you and others with more feedback, assistance, and information to improve the future because everyone deserves to find happiness one way or another. I’m thankful we were here to help you when you needed it.

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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