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60K in private student loans from KeyBank

Started by life89450, March 13, 2016, 11:34:56 am

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I have 60K in private student loans from KeyBank. I defaulted in April 2011 and have not made a payment since (5 years ago). I received a settlement offer from a law firm in August 2014 for 36K but did not have the $$ at that time so I ignored offer and have not taken any calls from collectors to date.

I live in Nevada and statute of limitations (SOL) for promissory notes is 6 years. Prior to Nevada I lived in AZ and SD which is where the loans originated.  Per my online research SOL is also 6 years in both of these states.  I'm at 5 years right now but deathly afraid they are going to sue me the closer I get to the 6-year mark.

I've been saving $$ in hopes of settling with KeyBank and will have approximately 30K in 3 months.  I want to have the full 30K before I start negotiating so I can pay immediately upon agreement. 

(1)   Do I wait and see if they offer me another settlement amount given SOL is approaching in 1 year? Or, move forward and contact KeyBank or collection agency myself?
(2)   If it's recommended I initiate settlement process should I start now or in 3 months when I have the full 30K?
(3)   If and when I move forward who should I contact? KeyBank or collection agency?
(4)   What is a good settlement offer?  I've heard 20% of loan amount.

Any recommendations are greatly appreciated!!  I'm terrified of dealing with creditors!!


This is a great question for a student loan lawyer. You might ask a lawyer to see if it makes sense to wait out the Statue of Limitations, or see if they can help you reach a good settlement amount if that doesn't apply.

As for who to contact, look on your credit report - it will show the current owner of the debt.