Legal Question in Credit and Debt Law in Missouri

Default Student Loan Repayment

I would like to offer a settlement amount to the William D. Ford Direct Loan Program on my student loan, which is currently in default. I have read online that I have a number of repayment options including forbearance, consolidation and refinancing.

Before I call them, will they even consider an offer for a 15% - 25% reduction in the loan amount in exchange for a lump sum payment of the balance?

Thank you for your response!


Asked on 9/18/02, 1:05 pm

1 Answer from Attorneys
Anthony DeWitt Bartimus, Frickleton Robertson & Gorny, PC

Re: Default Student Loan Repayment

They are probably going to want a full financial statement from you, and they're going to want to know what justification you have for such a reduction. Student Loan collectors are very tough folks. But, whatever you do, you must get that loan out of default because otherwise your tax refunds are going to be appropriated.

Good luck.

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Answered on 9/18/02, 1:40 pm


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