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 lump sum 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. 

Questions:
(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!!

I wouldn’t even think about settling. That debt no longer has anything to do with the original party. After 180 days of non payment that debt was charged off (they received their tax credit) and it was sold to a third party for pennies, literally. I would say the closer they get to the deadline of the SOL, if they can’t find you to drag you into a court room (where they will commit securities fraud and use the Judge to launder it). They will more than likely place a lien on you, in the County of original issue. In all honesty I wouldn’t worry about paying anywhere near 30k, 20k, or even 5k. You need to speak with someone that knows what they are doing. That will not only help, but teach you how to handle this situation head on. I have a Private Attorney General that I have dealt with for my IRS Tax lien. He’s great. He is also helping my family members save a lot of money on their tax debt (more than any other tax pro’s that I’ve dealt with) I can give you his information and just let you deal with him. He specializes in Taxes, Mortgages, and student loans and has had great success with all mentioned. Message me and I will give you his information…