I’m in the Military. Can I Settle My Federal Student Loans? – Tony

“Dear Steve,

Received 2 federal loans total of $10200 and now owe over $25000. I am military.. The loans have been in forbearance and deferment for ever it seems.. Married 3 kids to take care of plus my mom lives with me and my wife’s brother who has early on set Alzheimer’s.

I owe a little over $25000 on my federal student loan. I have recently come into some money. Only around $18000. Is it possible to call the student loan company and ask if they would settle my loan for that amount. Do they do that?

Tony”

Military

Dear Tony,

I can’t think of a single example when a federal student loan lender has done that. The federal loans just have so much authority to collect there is no incentive to settle.

However, depending on how long you’ve been in the military you may be eligible to have your student loans forgiven under the public service loan forgiveness program.

You should at the very least get your loans out of forbearance and into a federal loan consolidated program and on an income based repayment plan to lower the payment to as low as $0. As long as they sit in deferment they are building needless interest. And that’s exactly what has happened and why your balance have grown.

See How to Discharge Your Student Loans if You Are in the Military.

Bonus Video Answer

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

Sincerly,


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

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