What is a Reasonable Debt Settlement Offer for Federal Student Loans?

Question: Dear Steve, I have a student loan debt (30K) from 1983-1988. I consolidated in 2000 and now the total is almost $90K. What would be a reasonable offer-in-compromise? And, who would I be in touch with? These are federal loans. Thanks. What is considered a reasonable offer-in-compromise? Who decides this? Jonie Answer: Dear Jonie, … Read more

Should We Default on Our Wells Fargo Student Loans So We Can Stop Paying Them?

Question: Dear Steve, I co-signed a private student loan for my wife from Wells Fargo for about $19K. We starting paying back on this in Sept 2014. We’ve never missed a payment or been late. We pay $267 a month. Since that time we have paid almost $13K in payments but our principal is still … Read more

Will the Department of Education Settle My Federal Student Loan Debt?

Question: Dear Steve, I have old consolidated Federal Student Loans that I have some money to pay off. Some money is subsidized and some is unsubsidized. The interest is enormous at $120k Will they negotiate down the interest for a payment in full? Is there an Attorney that can help with this? Do you have … Read more

Can I Settle My Pace University Signature Student Loans for Less Than I Owe?

Question: Dear Steve, I graduated from Pace University in 2008 with $104k in student loan debt. The majority of this debt was secured through Signature Student Loans ($87k) with Sallie Mae and then a small debt through Federal Direct Stafford Loans ($17k). I grew up in a single parent home, my mom barely making ends … Read more

Should I Settle My Student Loans or Increase My Mortgage Down Payment?

Question: Dear Steve, I have a good bit of student loan debt and would like to get a mortgage, so I’m torn between down payment and settling loan debt. I have federal and private loans with Navient, around $129,000 worth, with IBR taking care of about $90k of the federal ($0 a month owed for … Read more

I Have a Younomics Student Loan I’ve Never Paid On and Want to Settle – Amber

Question: Dear Steve, I have a private student loan (originally My Rich Uncle, now called Younomics) that I took in 2007 for $6,000. I never made a payment and the loan is now close to $20,000. I would like to settle as I don’t want to wait another three to four years for this to … Read more

I Have Never Made a Payment on My Student Loans and I Just Got a Settlement Offer – Jason

Question: Dear Steve, I went to ITT Tech back in 2004 but never completed the course as I became disabled before completing the course. I have never made a payment on the loans and have good credit even with the defaulted loans listed on my credit. I have now been receiving letters from a company … Read more

Navient is Threatening Us as Cosigners on a Private Student Loan – Janet

Question: Dear Steve, My husband co-signed on our daughter’s private student loans. (We didn’t know they would be considered “private”…at the time). To the tune of $26,000. She is a single Mom with 3 teenagers and hasn’t been able to make payments ever. We paid on this loan for several years (didn’t realize it was … Read more

How Can I Settle My Federal and Private Student Loans for Less? – Trevor

Question: Dear Steve, I went to college on and off forever, I accumulated a massive amount of debt. With interest a 104,000 dollars. Ive been great at paying them living a simple life…. I’ve currently knocked them down to 28k. So my question is I currently have private and department of Education loans. Is there … Read more

Asset Recovery Solutions Won’t Give Me a Navient Debt Settlement Agreement

Question: Dear Steve, I currently have student loans in default with Navient. I received statements today in the mail from Asset Recovery Solutions offering settlement amounts for the Navient debt. I contacted whom I thought was Navient from their website at (888) 272-5543 but during the conversation I found that I was actually speaking to … Read more