Will settling student loan with a collector restart the clock on other ones?
I want to try and settle a federal student loan debt with a collector, but i want to make sure that isn't going to restart the SOL clock on any other defaulted debts that are private student loans.
Reply from DebtCollectionAnswers.com
Federal student loans are much harder to settle than private ones due to the fact that there is no statute of limitations, and that they have additional collection powers. Do you have an offer or have they expressed willingness to settle? If not, then it may be a moot point.
If you are in negotiations to settle then here is where an ironclad agreement would be in order. It should be very clear in describing which debt is being discussed. (We assume the same servicer holds more than one of your debts...is that right? If it's different servicers then it's hard to see how settling one will affect a completely unrelated one.)
If you aren't confident, hiring an attorney with student loan experience to look over the agreement for you might not be a bad idea. You can find one via the National Association of Consumer Advocates or TheStudentLoanLawyer.com.
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