Subscribe to our mailing list


How Can I Settle My Sallie Mae Student Loan Debt? – Roxanne

By on September 11, 2011
How Can I Settle My Sallie Mae Student Loan Debt? – Roxanne

“Dear Steve,

Have consolidated Federal Student Loans in 1999. Was locked in at 7.5% interest rate. One of these loans is a Federal Subsidized and other is Federal Unsubsidized.

I have been current on my loans and my balance is over 80,000. I would like to know how I can get them to take a discounted payment in order to pay off my balance in full. They told me that since these are Federal Loans there is not discounted payoff available.

My loans are in process of being transferred to Sallie Mae. Can you tell me how I can offer an amount that is less than the full balance due that they may settle on?


Dear Roxanne,

It is unlikely they will entertain any settlement offer. There is no reason for them to settle for less since they have the full power of the law behind them if you don’t repay your contractual amount due.

If you fall delinquent they can add a big balance as a collection fee, intercept your tax refunds, report you delinquent on your credit report, and garnish your wages.

Please post your responses and follow-up messages to me on this in the comments section below.

morehelp1 Choice1 Choice2 Choice3 Big Hug!
Get Out of Debt Guy - Twitter , G+ , Facebook
If you have a credit or debt question you'd like to ask just use the online form .

READ  What Can I Do About My Student Loans? - M

About 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.


  1. chris

    November 6, 2012 at 5:28 am

    Hi Steve,

    If I have PRIVATE student loans with Sallie Mae, are they likely to settle?

  2. Jonathan

    January 22, 2012 at 10:03 am


    I work
    as a counselor for a nonprofit credit counseling agency. I read your advice to
    this client and agree that settlements and bankruptcy are not going to be of
    help in this situation and that it is always a good idea to read and understand
    the fine print before you take out any sort of loan. The company I work for has
    some useful information on this topic on its website. it may give the op some
    helpful information on what options they do have to better manage the debt.
    Here is a link to some information the op may find useful: 

  3. Jluce

    September 12, 2011 at 2:10 pm

    You know there is something fishy going on when the government goes after the credit card companies for the way they do business, but when it comes to student loans, the government is much worse than the credit card companies could ever think of…  The only thing I can give the credit card companies at least they sometimes try to work with you to pay off the debt, unlike our lovely government.

    • Steve Rhode

      September 12, 2011 at 3:28 pm

      I’ve said for a long time that student loan debt is not the lilly white debt people assume it to be.

      I guess the bottom line is to better understand the terms of the debt you are getting in to. Student loan debt has not been dischargeable in bankruptcy since around 1995.

    • Student Help

      November 6, 2012 at 10:32 am

      Sallie Mae if your delinquent will accept 60% of the balance over a 24 month term. I settled with them in July under those terms.

      • Steve Rhode

        November 6, 2012 at 2:11 pm

        Good to know. Thanks.

Share a Comment / Leave a Reply

%d bloggers like this: