Heather,
My wife’s private loan statement shows that she has already paid over $5000 in interest on a private loan principle of $10,000. However, her principle is still $9500! It seems criminal that she has paid so much money to the lender and made virtually no progress in paying down the principle balance.

Do you know if there is any precedent or possibility to for loan settlement if the loans are not in default? I have read that there are strict guidelines on how defaulted debts can be settled here:

http://www.studentloanborrowerassistance.org/default-and-delinquency/compromise-settlement/

Do you think that direct loans or private loans not in default could be settled with the same types of formulas?

Thanks for all your help and advice.

I have the same question. Has anyone tried to negotiate a reduced lump sum settlement for loans not in default? My loans are federal. 
Thank you.