If you’re struggling with private student loan debt, settling with your lender could be a viable way to reduce what you owe and relieve financial pressure. Different lenders have varying policies regarding settlements, and the amount they may agree to settle for can vary significantly. Below, we’ll cover some of the most well-known private student loan lenders, typical settlement terms, and why working with a debt settlement company can make the process smoother and more successful.


1. Navient (formerly Sallie Mae)

  • About: Navient, one of the largest student loan servicers, manages both federal and private loans. The company has faced numerous legal challenges, which has opened up some opportunities for debt settlements.
  • Prior Settlement Results: Previous settlements with Navient have averaged at around 40% to 60% of the total loan balance.

    *Future results will vary based on many factors including age of loan, delinquency, financial hardship, hardship, and the ability to substantiate hardship (e.g. medical records, unemployment documentation, bank statement, etc.)

2. Discover Student Loans

  • About: Discover is a well-known provider of private student loans, typically offering competitive interest rates but limited options for forgiveness or settlement.
  • Prior Settlement Results: Settlements have generally been between 50% to 60% of the outstanding loan balance, especially for delinquent loans that have been passed to collections.

    *Future results will vary based on many factors including age of loan, delinquency, financial hardship, hardship, and the ability to substantiate hardship (e.g. medical records, unemployment documentation, bank statement, etc.)

3. Wells Fargo Student Loans

  • About: While Wells Fargo no longer offers private student loans, many borrowers still have existing loans with the bank. Wells Fargo is known for being somewhat strict on repayment policies.
  • Prior Settlement Results: Average settlements on Wells Fargo loans have been approximately 40% to 50% of the total balance, especially when the loan has been passed to collections.

    *Future results will vary based on many factors including age of loan, delinquency, financial hardship, hardship, and the ability to substantiate hardship (e.g. medical records, unemployment documentation, bank statement, etc.)

4. Citizens Bank

  • About: Citizens Bank offers private student loans and is known for being relatively flexible with repayment plans but less so with settlements unless the loan is significantly delinquent.
  • Prior Settlement Results: Settlements typically range between 40% to 60% of the loan balance, particularly when the loan has been passed to collections.

    *Future results will vary based on many factors including age of loan, delinquency, financial hardship, hardship, and the ability to substantiate hardship (e.g. medical records, unemployment documentation, bank statement, etc.)

5. LendKey

  • About: LendKey partners with various community banks and credit unions to offer private student loans. The terms for settlements can vary widely based on the specific institution that holds your loan.
  • Prior Settlement Results: Settlements with LendKey lenders have ranged from 50% to 70% of the loan balance, depending on the individual lender and the level of delinquency.

    *Future results will vary based on many factors including age of loan, delinquency, financial hardship, hardship, and the ability to substantiate hardship (e.g. medical records, unemployment documentation, bank statement, etc.)

6. SoFi

  • About: SoFi is a prominent private student loan and refinancing company, but it tends to be stricter when it comes to offering settlements compared to other lenders.
  • Prior Settlement Results: SoFi has settled delinquent loans for 50% to 60% of the total balance, though these settlements are less common and typically occur when loans are significantly overdue.

    *Future results will vary based on many factors including age of loan, delinquency, financial hardship, hardship, and the ability to substantiate hardship (e.g. medical records, unemployment documentation, bank statement, etc.)

7. Earnest

  • About: Earnest is another private lender that offers flexible repayment options but is less likely to offer settlements unless loans are severely delinquent.
  • Prior Settlement Results: Earnest loan settlements have ranged from 50% to 70% of the outstanding balance, usually for loans that are significantly past due or in default.

    *Future results will vary based on many factors including age of loan, delinquency, financial hardship, hardship, and the ability to substantiate hardship (e.g. medical records, unemployment documentation, bank statement, etc.)

Why It’s Better to Work with a Professional Debt Settlement Company

While it’s possible to negotiate a student loan settlement on your own, working with a professional debt settlement company has several advantages that can save you time, money, and stress:

  1. Expert Negotiation: Debt settlement professionals have experience working with different lenders and understand their settlement policies. They can negotiate better terms than most individuals, as they know what each lender is likely to accept.
  2. Reduced Stress: The settlement process can be overwhelming and time-consuming. A professional debt settlement company takes over all communication and negotiation, allowing you to focus on your other financial goals while they handle the heavy lifting.
  3. Avoiding Mistakes: Many individuals unknowingly make mistakes during the settlement process, such as agreeing to unfavorable terms or accidentally reaffirming their debt. Professionals can help you avoid these pitfalls and ensure the best possible outcome.

For those looking to settle their private student loans, CuraDebt is a trusted debt settlement company with years of experience negotiating with lenders. CuraDebt can help you achieve faster and more favorable settlements, providing expert guidance through what can otherwise be a difficult and confusing process. Working with a company like CuraDebt ensures that you have a professional advocate fighting for the best possible outcome while reducing the burden of debt on your finances.

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