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How can I settle my student loan?

Napa, CA |

I have a student loans through direct loan services and am trying to settle. I am having a difficult time. Is there a lawyer I can contact to help me settle?

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Attorney answers 3


Try Joshua Cohen at .

This reply does not constitute legal advice or establish an attorney-client relationship.


Student loans are often very difficult to settle, because they are generally not dischargeable in bankruptcy. That being said, studnet loan lenders will settle these loans, particularly if they have not been paid on for some time.

I would be more that willling to attempt settlement on your behalf. I guess I would not feel lawyerly unless I wrote a disclaimer to this answer - after all, that is what we lawyers are trained to do. So here it is. Disclaimer: Trying to provide a complete answer to a brief question without meeting the questioner and without getting all the facts is much like internet dating. Despite what you have been told by the person you have met online (and they tend to always put everything in the best light for themselves), once you meet them face to face you realize how much has been left out. People tend to bend the facts and there is always the other side to the story. So, this answer is about as valuable as the price that was paid for it. It should not be considered legal advice. It is meant as a general overview of how the law could apply to a very broad set of facts that may not have any applicability to the actual circumstances of the person making the question. It is hoped to provide some understanding of the broad field of law that could come into play. No attorney-client relationship has been formed with the questioner and no attorney client relationship was ever anticipated by my response to this question. I would also like to remind you that I am only licensed in the State of California, and the answer provided is based upon my knowledge of California law.


The ability to settle depends on certain factors, is it a private student loan or guaranteed loan; what are your financial circumstances, do you have the money to make a lump sum payment? But settlements are difficult. With guaranteed loans, there are rules and the settlement amounts that the Dept. of Education authorizes are not very favourable to debtors; if we are dealing with private student loans, then settlements become "relatively" easier and we look for ways to find collection violations to bring some leverage to the table.