Yes. There's no way around it. You can't settle a student loan in good standing. So if you want to settle, you have to default. And your credit score will suffer — if it hasn't already taken a hit.
A lump sum isn't necessary, but it's really helpful. If you don't have a large lump sum, we may be able to negotiate a settlement for a smaller amount combined with monthly payments, or, depending on how much you owe, we can do just monthly payments.
Student loans typically don't sue right after you default. They usually wait until the statute of limitations is close to running out on the loan before they sue. We should be able to negotiate a settlement before that happens.
There's no set time to get a settlement. I typically negotiate federal student loan settlements in a few weeks. Private student loan settlements can take up to a year (or more).
Watch this video to get an overview of how the student loan settlement process works when you hire me.
I've negotiated student loan settlements for people all over the world. Whether you owe a federal student loan or a private student loan, I know exactly what needs to happen to settle your debt for the lowest amount possible.