I’ve Been Sued Over My Navient Student Loan. Can I Settle It?

Question:

Dear Steve,

I defaulted on my Private Student loans around 5 years ago. I took $20K for my first year and $25K for my second year of my Masters degree in Music for a total of $45K.

According to Navient’s website I currently owe $95K+ at a 7.25% interest rate. They have sued me since I never made payments and I’m scheduled to go to court. Do you think I have a chance of clearing my debt with if I offer to pay in cash what I originally borrowed from them, $45K?

I am currently paying to Navient my Federal Student loans and have always been in good standing. But I am not willing to pay around $36K just to put my Private loans in good standing. Do you think I have a shot at settling for the original amount ($45K) borrowed? Please advise. Thanks!

Joel

Answer:

Dear Joel,

Is there a chance, sure. But you’ve got to get to the right department who has the authority to settle the debt.

The toughest part of trying to settle your own debt is you have no experience in dealing with this stuff and you have no idea of what a good deal might be at the moment.

I would suggest you hire an attorney to represent you in the suit who has experience in negotiating with creditors. You can find such an attorney by looking at the National Association of Consumer Advocates.

If you wanted to hire a debt coach to help you might want to look at Michael Bovee or Damon Day. You might want to read This is How You Can Settle Your Navient Student Loan.

The tricky issue is that now this has gone as far as being sued, there is no replacement for hiring an attorney that is licensed in the state where you live to legally represent you.

Steve Rhode Debt Coach and Author

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.

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