Below, we've created an example of a debt settlement proposal letter that you can use as a guide. Your letter can be sent via your preferred contact method.I can confirm that I am unable to offer to pay in full what I owe. And I want to offer this as an ex-gratia payment in full and final settlement of the account. Use this letter to help you negotiate a full and final settlement offer with a creditor. Student loan debt relief companies might say they will lower your monthly payment or get your loans forgiven, but they can leave you worse off. Please be aware that forms will be displayed in a NEW browser window. However, the borrower may be entitled to a deduction for qualified residence interest, such as in the case of a loan for a boat. If you fill out a form on a webpage, you will lose your progress.