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I Don’t Want to Pay My Private Student Loans Anymore

Written by Steve Rhode


Dear Steve,

Graduated 2011 from Houghton College. Lives in DC. Paying $600 a month for student loans.

Read your article about the ten reasons to stop paying private student loans. I’m to a point where I don’t want to pay and its killing me.

I’m still living with my parents because I cannot afford to move to a apartment or buy a home. Now with my private student loan AES their “financial management” had locked my account because I had a couple of payments sent back.

I had problems with my bank but I’ve been on time since 2011 everytime. Now after two rejected payments they have locked my account. I cannot look online, I can’t see my account summary to know how much I owe. I never received a warning no phone call, no emails, no mail to my home. I don’t feel like i can continue these payments until 2031.

What are the best options for getting rid of private student loans?

Is filing for bankruptcy a feasible and good option?



Dear Devin,

I certainly get a lot of emails from people about the struggles they have with private student loans. Next to tax debt it is the worst kind of debt to owe. Private student loan debt is a trap but don’t get me started on that.

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I believe you saw my article, “Top 10 Reasons You Should Stop Paying Your Unaffordable Private Student Loan.”

Dealing with problematic private student loan debt is an exercise if picking the best worst option on how to deal with them. There is no magic wand and no perfect solution to deal with them. That being said, there are options.

Bankruptcy is certainly one option for private student loans but it depends on the loans you took out and what they were used for. It also matters if the school was accredited. You should read “These Private Student Loans Can Be Easily Discharged in Bankruptcy.”

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Not wanting to pay and can’t pay are two different situations to be. If you can’t pay then you might want to accept the risk of defaulting, having that reported on your credit, being in collection, and face being sued. The reality is you can’t pay what you can’t pay.

Not wanting to pay is a different issue. That would involve a more contemplative review of your situation with careful considerations of the pros and cons of that strategy. After reviewing your options and situation with a professional debt coach like Damon Day then you might embark on a strategic default strategy if that is what you decide is best for you.

What I can guarantee for sure right now is you need to do some more research and educate yourself before you leap to do anything.

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About the author

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.


  • Just an FYI… TAXES and STUDENT LOANS are the two items that are 99.9%
    of the time that are not forgivable in bankruptcy. I tried it before. Anon is someone who fell in the .1% that got that cleared. He obviously had a great or very good Atty.
    I acquired my student loans in 93′ and 94′ and actually just paid them off in 2014. Whew!
    thank God for equity. I would have never been able to pay. The loan started at 6600.00 at that time. I paid it almost every month for about 5 years. And because of the interest….(get this) in 2014 my pay off was more than $12,000 in fact almost $13,000. It was very sad to see that money go out. I wish you luck, I hope you find a way out. If not….do not wait so many years to pay as it turns out to be epic proportions in interest. Good luck.

    • Well actually, federal taxes that are more than 3 years delinquent are easily discharged in bankruptcy nearly 100% of the time and more student loans are being discharged.

  • I would highly recommend a consult with Damon Day. He helped me get a large settlement with private student loans. He is very knowledgeable, fair and easy to work with.

  • Devin, Steve is giving you excellent advise. If you stop paying not only will you ruin your credit rating, but you take the risk of litigation (being sued). In addition you will most likely incur large penalties when the loan is reported as being in default! What I do not understand is the lender locking you out of your account. That information on your loan is your information and you should be allowed access to it. Perhaps you should write them a strongly worded letter demanding access to your files.

    Steve also gave you good advise to learn everything you can about your options. I did that and won a full discharge of $130K of my student loan debt in bankruptcy. But I was at a point of no way out, my credit was already ruined and living nera poverty. If you have a good job in the Metro area, you need to think carefully about what your financial situation looks like to your current and or future employers.

    Bankruptcy is not something employers like to see in a reference check! My 2-cent worth! Richard Allan Precht

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