TERI Debt - Any room to negotiate?

I have a $25K TERI guaranteed law school loan, days from defaulting. Is there any room to negotiate on the total amount due after default, ie. to agree to a lum sum payment of a smaller amount, like what happens with credit cards?

Anyone with experience with this?

Anyone know a lawyer who can negotiate this?

With federally guaranteed loans there is no hope because the federal government takes over the loan and they are in no rush to settle, but perhaps TERI would rather get something now than have to collect.

Please advise.

Thank you.

As you've noted, they have no incentive to settle as the loan is guaranteed.

You can try; see what happens. The worst they can do is say "no".

But TERI is the guarantor and they are private. Do they settle for a lower payoff?


Does interest accrue after default on a private loan?

Again, you can ask. The worst they'll do is say "no".

Interest continues to accrue. The debt hasn't been paid off.

Let me clarify:

If they are going to say "no" after I default, and I will still have to pay the full amount, then I do not want to default.

But if there is room to negotiate afterwards then maybe it is worth the default.