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.


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.

Do you have a question you'd like to ask me for free? Go ahead and click here.
Damon Day - Pro Debt Coach

Follow Me
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.
Steve Rhode
Follow Me
Latest posts by Steve Rhode (see all)
See also  Private University Said I Had a Full Ride Scholarship But Now I Have Sallie Mae Student Loans. - Ryan

6 thoughts on “How Can I Settle My Sallie Mae Student Loan Debt? – Roxanne”

  1. Hello

    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:


  2. 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.


Leave a Comment