Settlement help on huge, 198K, private student loan

Nobody ruined your credit but you....you have to take responsiblity for borrowing that much in private loans.

They wont settle until you default...by the time you default, you will have additional interest plus collection fees. Why not pay down the loan and then make payments on the balance? If you are earning a half decent living which they will check on, the settlement will be less....they will be more likely to sue and go for bank seizure and liens to protect their interests. Not to mention that property sales are public record and they can find out about your owning and selling property. When I was collecting on high balance accounts, I looked at the field of study and income potential....that was always taken into account when calculating a settlement.

I take home 3K/month, I have two kids, and they want 1200/month and after many many phone calls they refuse to lower the payment o something I can afford, ~600/mo. I'm constantly looking for a better job, and even worked a 2nd job for a year. That was an inherited property and a one time deal. So spare me when you tell me how I ruined my own credit?!?

If i can take care of the entire note with the 145K I have available, I will gladly do it, but not with an extra 40-50K in interest and fees left over. So, If i default, is it possible to settle for the original balance? Take into consideration that i make 3k month, they know nothing about the property i sold and probably won't until I file 2010 taxes (im ~110 days from default), they can't garnish my wages and their only option is to sue.

No, they wont settle for the original balance. If you put the amount down, you will have principal left over, not interest...interest is paid first.

Home sales are public record...it is already out there. Private loans dont have access to your taxes but there are other data basis they have access too.

You have to take responsiblity for wrecking your own credit. You borrowed the funds....private loan funds at that, not federal. Did you look at the income potential before borrowing? Do your research? Look at more affordable schools? Ask questions as you were borrowing as to what your payments would be?

Yes yes and yes, but you haven't noticed there's bit of a recession so I took a job that was available until something better becomes available. Your after the fact questions are useless.

Yes there is a recession but that doesnt change your responsiblities. Federal Aid would have taken into account your income and family size...private loans do not. You have the funds to pay off the bulk of what you owe...you are hardly a hardship.

FYI at ~69 days past due they (sallie mae) have agreed to settle at 85% of the balance so far

Who ever said I didn't want to take responsibility???? I want to pay them or I wouldn't try to settle. I just think its wrong that they can tack on outrages fees 138K to 198K and the government allows them to do this and takes all incentive away for the lender to negotiate. I have a family to take care of, I just can't dish out 50K in fee's and interest without trying to settle for a lower amount.

I used a firm called DS Financial and they settled with my creditors for less than 25 cents on the dollar. They can be reached at 866--833-6398.