This is How You Can Settle Your Navient Student Loan

“Dear Steve,

My wife has a reasonably large private student loan. I have recently come into money and would like to settle this loan with Navient for a lesser sum than what is owed on the loan. What is the best way to go about this and what questions should I ask in order to get a settlement?


Dear Chris,

While Navient may say they don’t settle private student loans they hold, they actually do. Settlement offers I’ve seen have been in the 45%-50% range with up to two years to pay.

But, and this is a big but, they only seem to do this for people who are significantly past due on the loan. I’m not encouraging you to go past due, just telling you what reality is. This is more of a general creditor process failure than anything else. Creditors do not exercise logic when it comes to collecting. Instead, an understandably so, they use what they feel works best for them. This might be continuing to pressure people rather than let on they do settle.

If you call Navient and say you’d like to settle, don’t be surprised if they tell you they never settle. This is because the general collections and the initial delinquent collections departments just don’t have the authority to enter into such agreements.

The settlement offers seems to come from the pre-charge-off department when loans are more than 120 days past due.

So herein lies the problem. You will have to risk going significantly past due and hope they continue to offer the settlements. It will negatively impact your credit and you could get sued over the delinquent debt. Let’s not forget, if you are solvent, the forgiven debt will be taxable and you will probably get a 1099.

Feel free to take a swipe at settling the debt or contact my friend, and get some professional help with this.

See also  I Have a Younomics Student Loan I've Never Paid On and Want to Settle - Amber

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


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Steve Rhode

72 thoughts on “This is How You Can Settle Your Navient Student Loan”

  1. Hi steve,
    My name is Jamie and I am in some awful trouble. When I first went to college, I took out 4 separate private loans with sallie mae each year for tuition. I had my father cosign for them each time because that was the only way they would allow me to receive the money to pay for college. About 2 years ago I started to pay them pay, It was almost 900 a month I was paying them, which was crazy because I wasn’t even making enough each month to cover the loans and to live. I depleted my entire savings just in paying them to find out the balance barely moved an inch. Last October, my father passed away unexpectedly and it was a very tough time for me and my siblings. I went into forbearance for almost an entire year, then finally I called Navient and asked them what to do now, they said I should send them a copy of my fathers death certificate so I can have him removed from my account. I did so, and now a few days before my father’s house is about to close, Navient’s third party sent a claim to my attorney stating that they are coming after my father’s entire estate. The third party said they do no care whether I am current in my loans or delinquent, once they are notified that the cosigner is deceased they automatically come after anything and everything they can. I offered to pay them a few thousand dollars now and to go on a monthly payment plan where they would take the money directly out of my account moving forward and they still denied that. They are only willing to settle for 75%, I do not have that amount, nor does my father’s estate after the state pays back all of his debts. Also, if this third party takes the rest of the estate, my siblings will most likely never speak to me again because they were expecting to receive at least 20K from the closing after my father’s debts were paid. I have no idea what to do from here, If they take what is left from my dads estate, I will still have to pay them monthly, so I will not receive an inheritance and I will continue to owe them every month. It just doesn’t seem fair that they can do this. Do you have any advice on this difficult situation?
    Thank you so much

  2. graduated in 06 and not sure why am just looking at my forms right now. I had them sent to me and one note is not signed by me, its a computerized signature.

    So back story, my loan was bought from Sallie Mae. So i am also discovering my rate, it differs to what Sallie Mae was charging and i never signed anything for Navient.

    In addtion to my rate and unsigned note, the summary of what i owe and my balance today differs big time. From that summary page they sent me and what i paid, im owed a refund by $5k.

    What are the steps to getting rid of my loans and a possible refund? I found all this out by asking for all my documents what they have on file.

  3. Hello,
    Everything I have researched so far, basically says that I am out of luck, but I thought I’d ask anyway. I have been paying on a student loan through AES for about 11 years now – they have not had the loan the entire time. During that time, it seems that most of the payments have been going to interest as the full amount has not seen much movement. Maybe 20%. I have a special needs child that basically forces my wife to be an at home mom even though she has a college degree. I do well enough that I am not eligible for many assistance programs but so well that I can put anything aside for retirement or to know that my daughter will be taken care of when I am gone.
    My question is this. Why are people like myself that have been paying their loan for years (I have sent already enough to have almost paid off the original amount) not eligible for settlements? I understand that people do come upon hard times, but it feels like punishment for doing the right thing.

      • Private loan. Sallie Mae/ Navient. Co-sign. Nephew. He had health issues. Supposed to have been wrotei off. Me chapter 13. . Extension of 7yrs due my health they say I must pay after 15yrs.. my issues have gotten worse. Must move into senior citizen apt. I am 75 yrs old.what must I do?

        • It looks like you responded to a comment from over two years ago so I’m assuming this is not in response to a previous comment you left.

          So it looks like you are having some private student loan issues. I would be surprised if your nephew loans were in fact written off. Private loans get punted ahead by being put on forbearance instead of forgiven. I would be surprised if that’s not what happened in this case.

          On your private student loans, if you have not made a payment for years after your Chapter 13 then you should speak with a consumer attorney about how the Statute of Limitation (SOL) may apply. If it is determined the SOL has expired it is a defense you can raise if you are sued and you need to learn what not to do to start the SOL clock over again.


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