Getting out of default on private student loans is a much different process than for federal loans. Unlike federal government loans, private student lenders are not required by law to offer “get out of default” programs. Some lenders may have these programs, so it’s a good idea to check with your lender. If they do offer this type of program, make sure to ask what the requirements are and whether the lender will clean up your credit report after you complete the program. The main problem is that most private lenders charge off loans after 120 days of missed payments. (The time period will vary depending on the lender). After the loan is charged off and in default, most private student lenders will not work with you to help you get out of default.
The key is to understand the difference between consequences of federal loan defaults and consequences of private loan default. The federal government has extraordinary collection powers if you default. In contrast, lawsuits are the main collection tool that private lenders have. You should consider these potential consequences carefully in deciding how to address private student loan problems. You should also review your loan agreement and find out more about the default triggers that your private student lender uses.