How do I get rid of private student loans?
Asked by: Holden Bernier | Last update: February 9, 2026Score: 4.4/5 (29 votes)
Getting rid of private student loans is tough, but possible through options like refinancing, negotiating with your lender for forbearance/deferment, debt settlement, bankruptcy (difficult but an option), or through specific lender programs for death/disability discharge; most other forgiveness isn't available, so focusing on managing payments or restructuring the loan with your lender is key.
Is there any way to get private student loans forgiven?
No, private loans have no forgiveness option. And it's highly unlikely discover would ever reduce what's owed, they have no reason or incentive to do so.
How can I get rid of private student loan debt legally?
Filing for Bankruptcy
You can discharge federal and private student loans in bankruptcy. Bankruptcy is often considered a last resort option because of the impacts it can have on your credit and the costs and time involved in filing for bankruptcy.
What to do if I can't pay private student loans?
If you are struggling to make payments, it may be worth considering refinancing your private loan or negotiating a settlement for a lesser amount than you owe with your lender (both are discussed below). If you really can't afford the debt, you can also look into bankruptcy options.
Can I ignore private student loans?
Once you miss a private student loan payment by 30 days, your lender will likely report it to the credit bureaus. This single action can cause your score to drop significantly. If you continue to miss payments, the damage gets worse. After 90 to 120 days of non-payment, your loan will enter default.
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Do private student loans go away after 7 years?
While defaulted private student loans will be removed from your credit score after seven years, their impact on your credit can be long-lasting. Having loans in default will make it much more difficult to open credit cards, get an auto loan or qualify for a mortgage.
Can private student loan companies take your house?
Can private student loans take your house? Until you default on private student loans, your house is safe. Private lenders must sue the borrower and get a judgment before putting a lien on a home or taking money from a bank account.
What is the 7 year rule for student loans?
The "7-year rule" for student loans generally refers to how long negative information stays on your credit report, typically 7 to 7.5 years after delinquency or default, but it doesn't make the debt disappear; the loan itself remains until paid. For federal loans, negative marks often come off about 7 years after default or transfer to the Department of Education, while private loans usually take 7.5 years from default/charge-off. This rule is different in bankruptcy, where federal loans are usually dischargeable after 7 years from when you stopped being a student, with exceptions for hardship.
Can I settle my private student loan debt?
Private lenders will offer settlements in some cases. However, the lenders can require very large lump sums to settle debts even from borrowers who are low-income.
How to legally get out of student loans?
You can legally get rid of student loans through federal programs like Public Service Loan Forgiveness (PSLF) or Teacher Loan Forgiveness, disability discharge, borrower defense (for school misconduct), closed school discharge, or income-driven repayment (IDR) plans, which forgive remaining balances after 20-25 years; bankruptcy discharge is also a rare option for both federal and private loans, while private loans might be settled or discharged in bankruptcy.
What happens after 7 years of not paying student loans?
After 7 years, negative information like late payments on student loans usually disappears from your credit report, but the debt itself doesn't vanish; it remains owed and can still be pursued, especially federal loans which don't have an automatic discharge after 7 years, unlike some older rules. Federal loans have long collection periods, potentially lasting decades, and may be discharged through specific Income-Driven Repayment (IDR) plans after 20-25 years or via bankruptcy, while private loans are subject to state statutes of limitation, which vary but can be reset by partial payments or acknowledgment.
What is the 50 30 20 rule for student loans?
The 50/30/20 rule is a simple budgeting guideline that allocates 50% of your after-tax income to Needs (rent, groceries, minimum debt payments like student loans), 30% to Wants (dining out, hobbies, travel), and 20% to Savings & Extra Debt (emergency fund, retirement, paying extra on student loans). For student loans, this rule helps balance essential living costs with financial goals, though high loan balances or living in expensive areas might require adjusting the percentages, potentially shifting more towards the 20% for debt repayment to accelerate payoff.
What are valid reasons for deferment?
Good reasons to defer (postpone) college include taking a gap year for work, travel, volunteering, or personal growth to build maturity and clarity; addressing financial needs by saving money; gaining relevant experience through internships or jobs; or dealing with personal health/family issues, all leading to better college readiness and focus. It's a chance to gain life experience that enhances personal development and academic motivation before committing to a degree.
Can I convert my private student loans to federal?
Since private student loans are held by a private bank or lender, you can't refinance private student loans to federal loans. The reverse, however, is possible. You can refinance private and federal student loans into a new private student loan with a new, ideally lower, interest rate.
How much is the monthly payment on a $50000 student loan?
A $50,000 student loan monthly payment varies significantly, but expect around $530 for a 10-year term at 5% interest, while longer terms or higher rates mean lower payments (e.g., 20 years at 7% is ~$387), and income-driven plans can make payments even lower, sometimes under $100, based on your earnings. Factors like interest rate, loan term (10, 20, 25 years), and repayment plan (Standard, Graduated, Income-Driven) heavily influence your exact payment.
Why are private student loans not forgiven?
While the Biden administration forgave $188.8 billion in student debt, private student loan borrowers don't qualify for any loan forgiveness plans. That's because the U.S. government owns federal loans. Private loans, on the other hand, are funded by lenders such as banks and credit unions.
Can private student loans take you to court?
Private lenders sue when your loan enters default and collection efforts fail. After enough missed payments, the lender accelerates the balance — the entire amount becomes due — and pushes the account into legal recovery.
Will a debt collector settle for 50%?
Creditors may accept a 50% settlement offer, but it's far from automatic. Timing, hardship, creditor flexibility and your ability to make a lump-sum payment all play major roles in shaping the outcome.
How long would it take to pay off $100,000 in a student loan?
Paying off $100k in student loans typically takes 10 to 25 years, depending heavily on your interest rate, monthly payment, and chosen repayment plan (e.g., 10-year standard vs. 20-25 year extended plans). Making more than the minimum payment or choosing aggressive repayment strategies can significantly cut this time, while higher interest rates extend it, with the average borrower taking around 20 years in practice.
Are private student loans eligible for bankruptcies?
Specifically, it allows private student loans to be discharged in bankruptcy regardless of whether a debtor demonstrates undue hardship. Under current law, student loans may be discharged in bankruptcy only if the loans impose an undue hardship on the debtor.
Will my student loan be written off after 10 years?
Yes, federal student loans can be forgiven after 10 years through the Public Service Loan Forgiveness (PSLF) program, which requires 120 qualifying monthly payments while working full-time for a government or qualifying non-profit organization; other Income-Driven Repayment (IDR) plans forgive balances after 20 or 25 years, and a recent SAVE plan adjustment offers forgiveness after 10-19 years for smaller original loan balances.
How do I get my student loans discharged?
You can get student loans discharged under specific conditions like Total & Permanent Disability, school-related issues (closure, false certification), death, or bankruptcy (requiring an "undue hardship" claim), with forgiveness also possible after 20-25 years on Income-Driven Repayment (IDR) plans for federal loans, but options vary by loan type and require applying through your loan servicer or the bankruptcy court.
What happens if I never pay back my student loans?
If you don't pay student loans, they go into default, severely damaging your credit, leading to wage garnishment (up to 15% for federal loans) and tax refund seizure (federal), collection agency involvement, and loss of eligibility for future federal aid; private loans have similar impacts but often require a court order for wage garnishment and the cosigner becomes responsible. Ignoring the issue makes it worse, but options like income-driven repayment (IDR) plans or loan rehabilitation exist for federal loans.
Can the government seize your bank account for student loans?
The federal government can also sue defaulted borrowers to seize assets such as bank, brokerage and retirement accounts, place liens on real estate and increase the wage garnishment amount beyond the 15% administrative wage garnishment limit.
How can I get out of my private student loans?
You can get out of private student loan debt by agreeing to a settlement, obtaining a discharge in bankruptcy, filing a lawsuit against the loan holder, or waiting for the debt to expire.