What actions can I take If my private student loans are in default?

I have student loans totaling over $119,000. I have been paying the amount owed every month, with the the exception of this year because the payment amount was doubled. Partial payments have been made with the exception of two months. I’ve spoken to several representatives and even contacted the presidents office about lowering the payments because I can’t afford them. What course of action can I take to get my loans out of default? Also, if I am offered a payment arrangement, is that arrangement my final option?

Asked on July 16, 2012 under Bankruptcy Law, Pennsylvania


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you cannot afford the monthly payments on your student loans at this point, you need to call the lender, let its representative know such and try and work on a revised monthly payment schedule per a written agreement to get the loand out of default. Loan payment schedules can always be revised assuming the lender and you agree to such.

Many people I know who have student loans take a second job whose wages are specifically earmarked to repay the student loan.

Under federal law, student loans cannot be discharged in a bankruptcy.

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