Private College Student Loan

Does Direct Loans (William D Ford) settle students loans?

I owe over $16,000 and wondered if Direct Loans ever settles. I think my initial loan was around $12,000 and have been on income contingent so no payments, but still being charged interest and they capitalize it once a year, so almost $5000 is interest alone. If so, any idea what they might settle for? Thanks for any help!

Public Comments

1. Most student lenders do not settle. Here's what I recommend. Call them up and put on your nicest and most polite face ever. Explain the situation to them and see what they might be willing to do to help you out. They may give you lower payments or better payment arrangements. It's doubtful they'll settle for a lower amount but be polite and smile and ask anyway. Don't raise your voice and don't argue because this won't get you anywhere. I wish you luck.