I’m in the Navy. How Can I Tackle Private Student Loans in Default. – Theresa

“Dear Steve,

I graduated from college in 2006 with a BA and then enlisted in the Navy. I have been in the service now for 6 and a half years. I have about $116,000 in private student loans that are in default. I don’t make enough money to take care of my living expenses and send money to my family who is struggling in these hard economic times and make payments on these loans. But I need to do something to fix my credit and get rid of this debt hanging over my head.

How can I best tackle private student loss that are in default?


Dear Theresa,

There are some great options for eliminating student loan debt when you are in the military. See How to Discharge Your Student Loans if You Are in the Military.

Unfortunately these options are really for government backed loans and not private loans.

If you are on active duty, you could get your student loan interest rate reduced to six percent. Are you on active duty?

To reduce your interest rate to 6 percent under the Servicemembers Civil Relief Act (SCRA), contact your loan servicer and ask about this option directly. You will need to send a written request to your servicer plus a copy of your orders calling you to active duty. You can submit your request at any time during your active-duty service or up to 180 days after leaving active duty, and the interest-rate reduction must be applied retroactively for the whole period of active-duty service.

When it comes to private student loans you’d have to contact your loan servicer and ask them about options for military members.

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.
Damon Day - Pro Debt Coach

See also  How the Soldiers' and Sailors' Civil Relief Act Can Help You
Steve Rhode

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