Has anyone tried to pay their principle loan amount in 1 Lump Sum?

Hi all!, I am new to the community. I have been hoping the Biden administration would choose to cancel or reduce Federal (and Private) Student Loan Debt, however looking at their track record so far this is doubtful thoughts?

Hence I have considered offering to (bargain) to pay my principal amount in one lump sum - which I just might able to pull off if I get a grant I’m applying for this year. This would be the first chance I would have to do this ever. I have been in default for well over a decade. I called the Dept of Education this winter and had a ridiculous and very disheartening call with a hostile employee (hard job!) and they will only let me pay back an amount the computer says which includes the massive interest. Has anyone tried this? Managed to reach out and hear back from the Fed directly, and was able to pay back JUST THE PRINCIPLE sans interest? Should I keep waiting for the Biden administration? I can’t try to buy a property or anything as long as I’m in default and I DO NOT wish to enter into their repayment system and shell out money indefinitely due to interest that I would prefer to/ need to put toward a mortgage.


Your loan servicer is the critical focus because the servicer determines how to apply the payment.
I believe you need more information about restoring your credit after defaulting and then sorting out. The servicers typically apply all payments to interest regardless of lump sum payments. Private loan lump sum payments are treated differently in my experience until 2019 where lump sum payments were not correctly applied and interest was the focus of the exchange with the servicer.

hmmm…mine is a federal student loan as shared in the post…

Paid several private loans off with lump sum payments with success, but the most recent $12000 payment to Navient did not clear the principal because this company’s practice is to keep the account paying, not to clear the debt- likely true of other loan servicers. Try to get a written guarantee of how your lump sum will be distributed before sending a payment.