Hi everyone, I just ran across this forum today and haven't found an answer while searching.

I have a student loan that is about 11 years old and due to bad decisions, etc. it has been in and out of default over those years. Recently, I signed up with Direct loans from William D Ford and when this was done I was told I would pay about $50 a month in the beginning and it would go up over time. This was because of our income right now, however the reality is it is running just over $200 a month which we have not been able to pay (and, unfortunately, have ignored yet again).

When I took out the original loan this particular one was about $20,000. Over the years I have paid thousands into it but due to late fees, defaults etc. it has gone up to just over $31,000.

I am in the process of getting a job overseas that would allow me to pay this loan in full in approx. 5-8 months depending on which position I get. My question is, would it be possible for me to negotiate a lower lump sum that is more in line with the original debt without all the tacked on fees etc.?

I would like to pay it off even sooner if possible, will pay the whole thing if needed, but would obviously like to pay a lower amount if possible.

Any ideas on this?

In addition, would it possibly be better to maybe negotiate paying a lump sum in return for having a chunk knocked off and then pay a small sum over a year or so to help build credit? By this I mean pay a chunk while a portion is forgiven, but I still owe a small chunk as well.

My credit is shot and has been for years, but I would also like to fix that at the same time. My intention is not to get back into debt with cards or anything (haven't had those for 10 years now) but you can't do a lot of things without credit. My goal is to save money over a few years overseas to build/buy a home and basically live a modest lifestyle providing for our basic needs.

The past few years we have stripped down to the bare necessities and have found that other then debt over our heads, the lifestyle is more to our liking then having all the latest and greatest.

Thanks for any advice.

If you're thinking about paying a lump sum I would definitely negotiate to get the total amount decreased. They would be happy to get a full payoff and should be willing to give you a % off for doing so.

For advice on fixing your credit I think it would be best to get rid of that loan. I would suggest researching Donna Fox. She is an expert at raising FICO scores and basically anything to do with credit repair and debt.

Thank you, and I'll look into her information as well.