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Ask John A. Flynn, Esq. Your Own Question
John A. Flynn, Esq.
John A. Flynn, Esq., Attorney
Category: Bankruptcy Law
Satisfied Customers: 202
Experience:  14 Years Experience in Bankruptcy - Mid-South Super Lawyer
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can i ask to settle a private student loan even it is not turned

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can i ask to settle a private student loan even it is not turned over to the collection agency or in default put? It should be a long time ago placed in default or collection but they didn't.No payments made since nearly 2 years now.
Absolutely you can seek to settle such a student loan. And the length of time since payment should make them more amenable to a reasonable settlement.
Customer: replied 4 years ago.

Dear Mr. Flynn,

first I like to thank you for the fast hope making response.

Just tso we understand and do the right thing, since we, the family, like to settle the debt for our fully disabled familymember, is it advisable to do it ourselves or would you recommend to hire a lawyer and is it acceptable to offer the original loan amount, since that be the best we could do, or would you think we have no chance?

Thank you very much for your support and help in this matter.



Well, I would probably offer something less than the original loan amount. Given that the family member is fully disabled, I would advise asking the student loan creditor about the possibility of agreeing to a voluntary hardship discharge, in which you might not have to pay anything. If they are unable or unwilling to agree to that, you might start out offering a lump sum settlement of 25-30% of the debt and negotiate up from there if necessary. You don't strictly need an attorney, though it might not hurt to engage one in your local area to assist. If you handle it without an attorney though you might need the family member to execute a power of attorney in your favor in order for the student loan creditor to deal with you. I hope this helps.

John Flynn
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