lump sum settlement for navient federal student loan

[Anonymous]

i done research on lump sum settlement for student loans,they was in collections but i just rehabbed them to help credit report.now they are all back with navient.ive got great info forom this site about rebuilding credit,so can i negotiate with navient for lower lump sum settlement or is my research right you can only settle when its in collections.thanks

[egypt04]

Pretty sure you can't "settle" any federal student loans for less than what you owe on them. They'll give you a payoff total if you call them but it won't be reduced, it will be for the full amount.

Only private school loans will offer that once your account is in collections.

Anyone else know anything different?

[redneck18]

It's not widely publicized but loan services are given the authority to settle for less than is currently owed, reducing collection fees and potentially even a portion of the interest. I'm not sure they are able to do this when the loans are current though.