Private Student Loan Help — Relief for Default, Collections & Missed Payments

You Have More Options Than You Think

If you are behind on your private student loan payments or can no longer afford them, you have more options than most people realize — even though private loans have far fewer government protections than federal loans.

Many borrowers assume that because there are no government forgiveness programs for private student loans, they are stuck. That is not true. PSLA Center has helped thousands of borrowers get relief through a legal debt validation process that challenges the collection agency's legal right to collect.

What Happens If You Fall Behind on Private Student Loans?

Private student loans work differently from federal loans. When you miss payments on a private loan:

• After 90–120 days, your loan typically goes into default
• The lender may sell or assign your debt to a collection agency
• The collection agency begins collection efforts — calls, letters, and potential legal action
• Unlike federal loans, the lender cannot garnish your wages without first getting a court judgment
• A statute of limitations applies based on your state — if the debt is old enough, they may be legally barred from suing you

Why Debt Settlement Doesn't Work for Private Student Loans

You may have seen ads for debt settlement companies promising to negotiate your private student loans. This approach is rarely effective for private student loan debt. Private lenders — including Navient, AES, Sallie Mae, MOHELA, and Wells Fargo — generally do not agree to settle private student loan debt the way credit card companies sometimes do.

Debt settlement companies will often hold your money in an escrow account, collecting interest, while doing nothing — waiting until you have a large enough lump sum to offer. Meanwhile, your debt continues to grow and your credit suffers further damage.

You should never pay a collection agency on a private student loan without first understanding your legal rights.

Why Bankruptcy Is Not the Answer

Discharging private student loan debt through bankruptcy requires proving "undue hardship" — a legal standard courts apply very narrowly. In most cases, private student loans survive bankruptcy, and a bankruptcy filing leaves the most severe negative mark possible on your credit report.

Our Private Student Loan Help Program

PSLA Center's debt validation program is specifically designed for private student loan borrowers who are behind on payments, in default, or in collections. The program works by legally challenging the collection agency's right to collect on your account.

Under the Fair Debt Collection Practices Act, collection agencies are required to provide documented proof that they have a valid, legal right to your specific debt. This includes a complete chain of ownership from the original lender. Many collection agencies — especially those collecting on older private student loan debt that has been bought and sold multiple times — cannot provide this documentation. When they cannot, the debt can be legally invalidated.