LOSFA needs to confirm compliance with your loan obligations for your license to be released. We will continue to update this list as we find more lenders: They are currently in bankruptcy status with navient. Determining for sure whether these are Dept. Sallie Mae claims it must abide, under U.
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My co-signer filed for bankruptcy on 3 of 4 of the loans at one point, but the loans were not discharged and they started trying to collect from me again.
Once the 3 loans came back into repayment status, the payments more than quadrupled and they got way too hard to handle. Will they actually take me to court at this point? My ultimate goal is to settle for ten percent. With private student loans from Navient, how many months into default is the best month to try and settle at the lowest percentage?
Is that possible for me? Navient is going to handle each account individually. It is just not common to settle that low, even when everything is aligned to suggest you shoot that low. Call in for a phone consult at ext 4.
There is a great deal to cover to determine what is possible when settling your Navient loans. Okay so this site seems like a good place to get my question answered. I received a call today from a debt collector in regards to a settlement offer from Navient.
My 4 student loans total about 20, and they are willing to settle for 6, as long as I can come up with the money within the next week or so. It would be classified as settled in full. When I called the debt collector back about it they said no that I would not receive a C and that the only money I would have to pay total would be the I was going to call Navient tomorrow to verify this and then get written confirmation before proceeding but it seems like someone on here may be able to answer my question.
DO not listen to the debt collector about you not getting a c on forgiven debt. They will have nothing to do with whither Navient sends you the And you should expect to get one. Read that link about getting a Not everyone ends up owing taxes on cancelled debt.
You also may want to structure your settlement with Navient in a manner that puts your lump sum payment in January, which buys you an extra year to save up to pay any tax you could owe on the 14k saved. Michael is preaching the gospel truth on debt settlement here. Debt collectors are not working on your behalf, they are working against you; and they regulary lie which is why their industry has over , complaints each year.
Two main things here: Secondly, talk with a licensed CPA since no debt collector is licensed to give valid tax advice. Then make a decision to accept the settlement or try to negotiate a lower one based on that. My daughter is still enrolled in school and Navient is telling her that she can no longer defer her loans. Is there a time limit on loans while you are in school? For private loans with Navient, sometimes their forbearance or deferment runs out before the student completes their degree — unlike federal loans which have a 6 month grace period.
What would our options be to change this. They are not very nice people to talk to, very nasty on the phone and bully you. Not sure how they get away with that. Yes they can be very nasty on the phone with borrowers unfortunately. They receive quite a few complaints due to that. I think the main options at this point would be beginning repayment, or possible strategic default to settle.
Like many of the previous comments, I have been paying on my private student loans regularly over the last several years and the balance owed has gone no where.. What can I expect if I decide to go the route of not paying them back and start to save for a settlement?
I feel like that is an inevitable outcome for me and I would rather start the process of healing my credit score now instead of 5 years from now. Andrew will provide his feedback, but for my part, I would be geared toward settling your private loans with Navient if it were me. I can see a far clearer path to financial viability, and credit report recovery too, by settling.
Hi Josh, I wrote an in-depth article about strategic default here: But in general, Navient will default the account between months past due, at which point negotiations begin. Structured settlements are available between months with a down payment that is at least one third of the settlement amount.
However, these carry more risk than a lump sum settlement because one missed payment can void the entire settlement. Also, better deals are usually achieved when negotiating with a lump sum settlement.
During the strategic default, expect a lot of phone calls and letters to you and any cosigners. I advise clients who choose to go this route to ignore the calls until the default occurs and I begin negotiations. I am just finding out when trying to purchase a house recently that I have a student loan through navient that is showing as a charge off, just wondering what I can do from this point to correct this. Is the loan federal or private? You can get back on track with federal student loans over a period of months so that your home loan can go through.
If the loan with Navient is private, it is often ideal to offer a lump sum settlement for less. This will provide the most savings and quickest path to getting your credit reports updated, if the lender is requiring that in order to fund your mortgage. I have been paying on my student loans off and on for 8 years now.
So many times I would be on a interest only payments plan that did nothing for me. My credit is destroyed and my loans ballooned from k to k as of right now. My job is tied to the gas industry in wyoming and has been severely effected. My family five lives at pay check to pay check. Not sure if I could settle the debt without bein able to make affordable payments. Any help would be greatly appreciated. Call in for a consult so that we can dig into the details of your situation Robert.
You can reach Andrew at , ext 4. Hi Robert, we would need some more information — are the loans federal or private? An interest only payment plan sounds like a Navient private loan to me..
On a larger private loan balance, litigation is a strong possibility if no settlement or payment arrangements are made. Feel free to call the number Michael mentioned to be connected with my office for an appointment.
My mom is consigner on my loan. Somehow she is listed as borrower and I as consigner. We have both spoken to Navient about this and have been told they cannot correct it. I believe I read somewhere that if I were to settle a student loan for less than I owe it could affect my taxes. Is that the case? Check out this article about taxes on cancelled or forgiven debt.
It is a legitimate concern. Talk to a tax pro, but both of you cannot owe tax on the same cancelled debt. You could cover the tax impact for her without wading into loan origination complications.
What is the balance owed today? After reading my linked article, would one or both of you qualify for submitting IRS form ? What I have been told by creditors is that the person the payment is coming from is likely to have the issued to them. I generally try to have settlement payments in these situations come from or look like they are coming from the borrower directly.
In your case, you may want to have the payment come from you in your name, so you are the one who receives the Michael discusses this further in his article here: For a definite answer I would contact Navient and possibly even three-way a call with your CPA, since they are the only one who can give definitive licensed tax advice.
You can reach them at Diana, Jessie, and Chuck are my favorite agents to work with there. Can they try to collect this debt from me almost 4 years later after they wrote it off as a bad debt? My husband and I also had to file bankruptcy in and was discharged in July of Thank you for any help you can offer!
You are reading more into the write off often referred to as charge off than applies. It is just an accounting requirement.
I would look at pulling the money together to settle. Call in and talk to Andrew at ext 2. Hi, I just graduated college with some hefty private loans. Anyways, I have two loans through sallie Mae. One for 9, at 5 percent interest. And another at 22, at 7 percent interest. I currently have a decent chunk of cash. Will sallie mae work with me?
Threatening default typically means nothing to loan servicers. You actually have to default for them to take a look at alternative resolutions with you. You can settle with Navient after you loan goes unpaid for several months.
If you are seriously looking at the option of negotiating a low lump sum pay off with Navient, call in and talk to Andrew at ext 4. I have 3 Navient Private Loans and my dad is a co-signer which are all current. I am trying to pay them off with some bonus money pretty soon.
I have about 23K and paid about 3k with in the last week. I feel like I will never get a chance to pay all of this off when I have about K of private and government loans. Will Navient settle with me if I am good standing for less than what I owe? Navient does settle private student loans. Fill out the consultation request from request consult tab at top of page.
Andrew will get that and set up a time to go over your situation with you on the phone. Hi Christina, Navient does settle as Michael mentioned, but the loans have to be in default for them to settle for a significant reduction. Also, if the majority of your loans are federal be sure to check out the different payment plans for those at http: I took out Sallie Mae loans in and have been unable to make a payments since The loans have come off my credit report but I just received a letter from a collection agency representing Navient.
What options do I have? If I start to make payments with the collection agency, will this appear on my credit report? I went to school in New York City. I have a private loan through Navient that has been charged off on my credit report but reported to collections. The loan was opened in Should I pay collections? When was the loan set to start repayment? When did you last make a payment on the loan? What state are you in? Feel free to call in and request Option 4 to do a free consultation.
I have a quick question I wanted to run by you guys. I have 3 private loans with Navient that defaulted Oct 31st. Paying 20 percent to settle your Navient student loans is a good outcome. Navient accepting monthly payments on that amount is even more attractive if I understand the offer right. Get everything in writing from them before you pay anything. If it were me I would want to pay this off in one payment if at all possible. Hi Aina, I think the main question here: The case manager from Navient offered me 3 choices: Pay 13, plus out of my 18, defaulted loans and be done with it.
Pay 8, to take my father off as co signer and pay the rest of the loans with a monthly payment. She gave me those 3 choices, and she was good at slightly threatening my co signer my father regarding his job and his house.
I will be speaking to her again regarding my choice, which right now will have to be choice 3. Hi Aina, you have other choices than what this collector offered. There is also a low interest payment plan available which does not require a large down payment.
This is available to all defaulted Navient private loan borrowers, which I know for a fact. The important thing to keep in mind here is that this collection agent is trying to bully you into paying a large lump sum. It would require a lawsuit for them to attempt to garnish wages, and a lawsuit would have to be done by a collection attorney in the same state as the borrower or cosigner.
This rarely happens, and there are plenty of opportunities to settle or do a payment plan before that. This is a good example of how it can be difficult to negotiate with a private lender on your own though. Hello Micheal, My mother has a student loan in her name from a class I attended back in Not sure of the exact year!.
I withdrew from the class within two weeks. I believe they falsified records, and continued to collect from the department of education. I checked with the national student loan data base and apparently I had three loans in my name listed under this school. And my mother is still being billed for over 10 grand. I start the Borrowers Defense application and came to Section 4?
I am stuck as to what to cite for NY sate law.. Any help is appreciated. Talk to some of the experienced student loan consumer law attorneys I sent you an email about. Let me know how things progress for you.
Borrower defense is still a fluid process to submit for. Should I pay the full amount to Navient or should I pay the settlement balance through the third party collecters they have chosen to find me?
Once you settle, if Navient is showing on your credit reports still, they will update it to show a zero balance owed, and a resolved collection account. How can I learn more about the Statute of Limitations? I had a private loan through Sallie Mae that went into default in I just want to find out if they can legally sue me or report this old debt to the credit bureaus it had previously fallen off.
Thanks so much for your time! You are passed that, and Navient should not put this back on your credit reports. If that happens post an update and we can go from there.
Thanks for your information. She has mental health issues, has never held a job and I can prove she has no income and participates in an outpatient intensive group program. She has no assets and I want my letter to emphasize that I would like to finalize a negotiated, lump sum payment on her behalf before I die. Thank you very much. Private loans that old can simply be ignored in a situation like your daughters, or settled for optimal savings.
Federal loans can sometimes be discharged in a bankruptcy, given the situation you outlined your daughter is in. Thank you so much Michael for your response. The calls from Navient started out of the blue day and night in July. Supposedly they will not give me any info, but they will take my money. The way they sounded on the phone I thought it was a scam at first. I am sure my daughter will not declare bankruptcy as she has nothing else to declare except these loans.
Oh the other loan it is with nelnet for 6, Both are in my daughters name and I have paid off and on for the Nelnet.
Do you feel if I sent verification of what I said to you formerly, that I could negoiate a settlement and if so can you offer any pointers to me. I would reimburse you for your advice. Get with your daughter and look up her loans at https: If the Navient loans are not showing, they are likely private. My feedback is going to be very different depending on what you find.
Please earmark my question and concerns as I know you have a lot of them — it may take me some time but I am focused on getting this behind me or should I say her. Hi Janet, Michael is spot on here. Sallie Mae and now Navient service federal loans and also originate private student loans.
If the loans are federal, a significant settlement is probably not possible regardless of whether the loans were current or in default. If they turn out to be private, you may be able to settle them but they would only accept a settlement if the loans were in default. They are relatively difficult to negotiate with as well. I got a letter in the mail from northstar location services That used to be with sallie mae. How old is the debt? Do you still see it on your credit reports?
This sometimes happens on debts that are past the statute of limitations and are close to or already past the timeline for falling off of your credit report.
On larger accounts, private student loan lenders usually put much more effort into collecting including legal collections before the statutes of limitation and credit reporting timelines have passed. I think the answers to the questions Michael asked would be key to making your determination on whether to pay the settlement or not. In that case, even a 6. We no longer live in the U. She has no assets whatsoever but makes a decent living. Her student loans are not manageable though given her age, lack of pension and assets.
What are our options? If she gies into default will they settle even if she makes a decent living? Being out of the country, you have the option to wait longer to try to get a lower settlement; but interest and late fee accrual may outweigh any additional savings by allowing the account to age further.
Navient employs some very aggressive and knowledgeable debt collectors who can be very convincing; but after doing so many settlements with them, I have a good knowledge of their collection cycle. I did a recent case study that showed how hiring a professional negotiator can actually cost less including the negotiation charge than a borrower trying it on their own.
I cosigned a loan with Sallie Mae now Navient around My husband was getting a BS and his CA teaching credentials. My husband has applied and was excepted for loan forgiveness on his other loans since he is an educator in underprivileged schools but Navient. I would like to try and negotiate paying the original balance only if possible.
Please let me know if you have any strategies on how to address this issue. Thank you so much. Hi Erika, settlement should be possible if this account is defaulted. If not, you may want to consider a strategic default to settle which is a valid strategy for private loans but not federal loans.
She asked us to open it for her. The letter requested that she call or send in the offer payment with the enclosed coupon. She has been unable to make the payments for sometime, and we thought maybe they figured something was better than nothing. But it sounds to good to be true, and so we are trying to find out if this could be a real offer. Any suggestions would be helpful. Those kind of offers do happen. Who was the originator of the loan? When did she last make a payment? That would be something to keep in mind.
With settlements, is there a way to settle the amount for less, with payments? If I am not able to save enough for the lump sum? Is that what structured settlements are? I know some lenders will balk at settling, because if I am able to make payments, why should they settle for less. Is the number listed on the post your consultation number? I would like to consult with you, to see what my possible options are.
I am currently defaulted on both my Navient 90 days and Wells Fargo loans 90 days. It is true that lenders will balk… up to a certain point. At 90 days behind, your loans are delinquent but not actually in default yet. That usually happens at days, but some lenders like Discover can charge off loans sooner at days. And yes, structured settlements are paying a settlement for less over time, with a significant down payment.
Along the way, collectors tried to harass my client, and just generally be a pain in the butt,. The BS legal threats mean nothing to me because I always settle far before that is a possibility, but if that were to happen, I know an attorney who is the owner of a nationwide attorney service, and many other attorneys in different states.
They would squash any attempt at a default judgment and work out a good settlement during the legal process. But a lawsuit is really the last resort for a lender.
It costs them more, with no guarantee that they can garnish wages or offset bank accounts. There are many, many opportunities to settle prior to that. I usually just work with managers and supervisors at Internal Collection department for lenders, and at third party collection agencies..
In a lot of cases, I can negotiate a lower settlement than borrowers can for themselves. This is not conjecture, I actually have a case study with a real life example of this dynamic playing out. In addition to negotiating the settlement, I make sure it is executed properly — something my fellow borrowers tend to struggle with even if they negotiate a decent settlement amount. I have contacted my daughter for more specific information though I am certain it has been years.
Charles MO according to online sources the site there is closed. I searched the address in the letter head, and there is no Central Credit Services listed for that address but an Integrity Solution Services is. I called the number listed for that company and got instead Central Credit Services. The offer did not contain a specific date to discharge it by, and the included coupon has very little information either.
Also the coupon address is a PO Box. Neither company seems to have a good reputatiion. Thanks very much for your info. No debt collector has a clean reputation. It comes with the territory, or they earned it. In my professional experienced with Central Credit Services formerly Veldos , they are easy to work with. You or your daughter can call Navient and verify that they placed the account with Central Credit for collection. I would not bother with the details of the settlement offer, just that you would be dealing with the correct party.
I agree with Michael.. They are generally more helpful than the normal customer service agents at Navient. I recently received a letter from Northstar Location Services offering a settlement on a charged-off private loan I have with Navient.
Have you heard of this company acting on their behalf? Also, the original Navient account is set to come off my credit report soon. If I make this settlement, does that reset that seven timing? Or will it still come off? Hi James, yes, that is a collection agency that regularly collects on private student loans.
Keep in mind that any initial offer you receive from a collection agency is their opening offer and they are probably able to accept lower if you negotiate. One reason that private lenders offer very low settlements is because accounts are past the statutes of limitation or may even be close to the time period that they would fall off of a credit report 7. Negotiating and paying the settlement will not cause this to stay on your credit reports for any longer.
Hello, I hope you are still receiving comments for this article. I have 2 federal and 2 private student loans with navient. My federal loans are currently on Ibr and lower balances. I have ignored my private loans for several years but filed bankruptcy in I did not attempt to have the loans discharged.
As far as I can tell my last payment for the private loans was sent in They are currently in bankruptcy status with navient. So they have not been contacting me even though the bankruptcy has already been finalized.
How can I know for sure if the Sol has expired and should I make them aware? I currently live in Arizona and lived in Oregon when the loans were taken out. Does Navient still show on your credit reports? What are you basing your assumption of the last payments being made in on? They are still on my report with the last payments showing as Transunion and Equifax both say it should be removed sometime in October…. That would put your private student loans with Navient passed the 6 year SOL to sue in court in order to collect in both Oregon and Arizona.
The SOL clock may have been paused by your chapter 7 for a little while, but that is often measured in months. I am not sure what you would want to make Navient aware of? What is your goal with contacting them? I have some Stafford subsidized loans that were disbursed in the mids that are still hanging over my head. When I graduated, I did try at first to keep up with the payments, but quickly fell behind. In the meantime, I discovered that the university from which I graduated is withholding my official transcripts because my loans are in default.
Since I was a stay-at-home-mom for years, access to my transcripts for employment or advanced education was not an issue, and the loans had been in default for so long that I no longer had bill collectors hounding me. Several times, I tried to resolve the situation, only to run into account managers who were unreasonable — demanding either full payment of the entire amount at once or monthly payments that were laughably high.
So, I let it go for a long time. I am finally at a place in my life when it would be beneficial for me to get out from under the debt, and I have a small amount of wiggle room in my budget to work on that goal. In January, I logged onto the myeddebt site and checked my balances. I called the assigned debt collection agency and hammered out a rehabilitation plan. I made the first payment of the agreed-upon amount over the phone and authorized monthly debits from my checking account.
However, almost immediately, I began getting multiple phone calls a day from the agency leaving vaguely threatening messages. They also called my family members — including my thenyear-old son — demanding information about me. Finally, I sent a letter insisting that they stop attempting to contact me by phone and that they stop harassing my family and friends.
I made sure they had my mailing address and e-mail address and instructed them to contact me by one of those methods if they actually needed to communicate with me. I heard nothing from them for several months, and the automated payments were withdrawn from my checking account right on time each month. Then, three months before what should have been the last payment before the rehabilitation was done, I got notices saying that they were missing paperwork, that my required monthly payment had increased and that I was no longer qualified for the rehabilitaiton program.
For one thing, I did make some payments on these loans before they went into default. In addition, my tax refunds have been offset at least a few times over the intervening years, in theory because they were being applied to my defaulted student loans. And yet the myeddebt site shows the outstanding principal for all three loans to be the same today as they were as of the date of disbursement.
In other words, it looks as though there is no record that I have ever paid a single penny on any of these loans, even though that is not true. I contacted my university and asked for copies of the original promissory notes and any related records they have, but was told that they maintain those records for only as long as is required by law something like three years.
I wrote to the Department of Education requesting a full statement of the history of these loans and copies of promissory notes and records and received no reply at all. At the same time, I notified the debt collection agency that I am disputing the balances due and requested copies of any records they have.
Almost two weeks ago, I sent follow-up letters, this time by certified mail, to both the Department of Education and the debt collection agency reiterating my request. I truly want to resolve this, but I want to know what I actually owe. Can you suggest any strategies to make progress on this? What happens if it turns out there actually are no records to be found? Hi Jenny, this sounds like a complex federal loan situation that would take either an experienced federal loan specialist or an attorney specializing in loans to figure out.
You could also try logging onto http: And yet another option would be bringing the loans current once and for all with Direct Consolidation, a free process. I discuss how to apply for Direct Consolidation here: However, they do charge a reasonable fee for their services, so you may want to try the DIY method first by filing some complaints and considering Direct Consolidation to get the problem solved.
A word of caution though, the actual loan balance of today may be x the amount what you borrowed if it was in default for decades, even despite the tax offsets. Someone is taking your payments — most likely the collection agency. They should not still be doing that when Rehab is finished, it should be transferred to a loan servicer as a current loan at that point. There have been many problems with collection agencies implementing Rehab though, and some of them have even lost their contracts with the Dept.
I have a Navient loan was Sallie Mae original from I got it down to 11k a few years ago, but my income just too low, and had been on forbearance here and there, and then on IBR which the last year and half my income was so low that my payment plan was ZERO. I did pay several hundred a year ago, so now my balance is at 15k due to interest capitalized.
I just sent them a letter asking what steps to do in order to do a settlement and I am waiting for a response. What should I offer? Or what should I expect? My thought, is even though I am not in default, my IBR is zero, which means they are still not going to get money from me unless I choose to pay. So them settling would be beneficial for them because I do not expect my income to change considerably anytime soon.
Thanks for any advice!!! Have you considered just staying on IBR and if your income increases, making affordable payments, until you reach 25 years on it and the remaining balance is forgiven?
I think that is your best bet. Interest does accrue on the income-related payment plans if your payments are very low relative to your loan balance, despite the limitations on interest accrual that are baked into these plans; so that is a downside of staying on them.
The fastest and least expensive way to pay off a federal loan is usually getting on the Standard payment plan and prepaying as much as possible on top of that. I hear from a lot of people who understandably want to settle their current federal loans, and it literally never happens. Sorry to be the bearer of bad news, but I think staying on IBR is your best option!
In the meantime I had talked to Navient and they basically said the same thing. I wish I had paid it off with my credit cards years ago and then it would have been discharged through the BK. But I never planned to file ch 7, and my student loans were tax deductible. One thing I found out is if you are on IBR for 25 years, then the government will forgive the loan. As of now both types of forgiveness are taxable, but there have been some legislative efforts to change that lately.
Sallie Mae hounded me until I paid a forbearance that only deferred them from contacting me for a month, however this payment was made March I know that I was delinquent prior to that. Sallie Mae sold my loan to central credit services and I answered their call November So I paid them They made it clear to.
I have not responded to any calls or letters. Did I restart the clock on my SOL? Is it still from date the account was closed? Again I paid because they threatened to garnish my wages and the The dates are all over the place on my. Also, can the date to fall. It erases 7 years or 7. I still have my bank statement for that. I thought about disputing the I also read some case law where is states you had to have knowingly revived your SOL for it to restart in PA.
But is this something you can clarify for me? How would I know for sure? Do I have to call someone about this. If you make a payment toward an unpaid debt it will generally revive or reset the SOL to sue for collection legitimately in the court.
You have some curious issues though, and I would run those by an experienced debt collection defense attorney in Pennsylvania. If you like, I can email you a list who have the experience you need. The credit reporting does not reage or reset with payments. When you failed to make timely payments is when this will have started.
Count forward 7 and one half years and that should be the drop date. If I was going to try to dispute a couple of month discrepancy for this student loan on my credit report I would normally wait until the time I thought it should age off. Ok thank you yes please send me resources! Thanks if this debt was sold to a different company, w0uld the new company have any record of phone calls made or just that payments were made.
And would these attorneys be able to give me specific information of whether or not I have restarted my SOL?
If it falls off 7. If they attempted to collect payment after my SOL that doesnt restart it too does it? Or am i able to file a complaint against them? The 4 year SOL means nothing other than a legitimate lawsuit cannot be filed. The debt does not expire. It is still collectable. There is nothing wrong with collectors collecting after that time expires.
They could contact someone 10 years later and still get you to pay. I will send you the email with attorneys listed.
They can help you understand the SOL better, and can determine, based on the details you share, whether there are law violations that they would pursue on your behalf. Just wanted to chime in here — private loans are rarely bought and sold to debt buyers after charge off.
Other than acquisition of loan portfolios like Navient did with their sister company Sallie Mae, or the types of acquisitions the National Collegiate Trust makes; private student loans are generally just contracted to collection agencies by the lenders to collect after charge off, not sold. The collection agencies are usually just collecting on behalf of the original lender. Debt buying and selling is much more common with old credit cards or other unsecured debts.
I think you also may be conflating SOL with credit reporting requirements — they are two separate timelines that are not related to each other. Making a payment could restart SOL. I agree with Michael that talking to an attorney about state-specific SOL or legal issues is the way to go.
I would love to negotiate a settlement but will find it hard to find that large of a sum of money to make them even consider it. What should I prepare to save while letting my account go into default? My husband and I just filed chapter 7 BK and our credit is already suffering, so we figure now is the time to settle all of our outstanding debt and would love any insight you have to offer. Hi Erika, yes, all of the private loan settlements go off of the current balance.
For more info to consider when making the decision to strategically default, you can read my blog article on that topic here: For Navient settlements, if a good amount of the settlement is available for a down payment, we can usually negotiate structured settlement terms out to months, and sometimes longer.
It may also be possible to use a lower down payment on the settlement, but it would result in the structured settlement payments being higher. I think working to settle the Navient private loans after doing the CH7 is a good idea.
So I will end up back into default and they will take my income tax return again. This has led to delinquency where I am constantly bombarded with calls and threatening letters. Note I still continue to make monthly payments on the other loan and a small amount in this loan that is currently in delinquency.
The most recent thing that happened was that I was contacted by someone who stated that Sallie Mae called them stating I had them down in my records. This was a total shocker to me because I know I did not list this individual.
Is this legal, is it considered the same as when creditors sell my information to debt collectors? Obviously it would appear unless there is a miracle that I would never be rid of these people, what do you think are my options. So far I did the assessment of budget to have the amount lowered and they stated that they did not see a hardship….. I asked how come if every month there is something owing? Please offer whatever guidance you can. My credit being is already dead, I want to be at a position where my friends and family are not affected by attempt to further my education and build myself.
That dream has turned into a nightmare! Hi Camille, this is a very common situation for Navient private student loans that are past due. Navient is extremely aggressive, rude, and unethical in their collection attempts.
From what you mentioned in your comment, I would guess that you are either past default or very close to it. Although settlement negotiation is possible, it can be very difficult when you are dealing with someone as rude and aggressive as your account manager. Many times, my clients have told me that their attempts to negotiate a settlement went nowhere, with the account manager declining their offers.
I hear from a lot of people who make the common mistake of offering the amount they want to settle for as the first offer. Successful private student loan settlement negotiations often involve rounds of negotiating or more — so you or your negotiator would need to start off with a much lower offer than you intend to settle for.
However, you still want to make the initial offer large enough to get their attention. Navient as an original creditor since the loans were transferred to them from Sallie Mae when Sallie Mae spun off Navient as a new company can try to call friends and family, or anyone who was listed on the account as a reference when the loans were originated. There are some states that prohibit these types of calls, but in many other states these types of calls can only be stopped if a third party collection agency is involved.
My problem is that I have cosigners so I am a bit worried to not work out a payment plan with them instead of waiting out the statute of limitations of 3 years. Do you know of any situations where one has been sued by Navient and the debtor has won due to a school closure? There are closed school options to pursue, but they are specific to certain circumstances that need to be met.
There are also borrower defense claims that can be made if you can establish unfair or deceptive state law claims though borrower defense is a federal program. Were there regulatory reasons the school was closed as it is already? There are some routes to try for cancellation or discharge of federal loans, as Michael mentioned, but it will be an uphill battle. As I like to say, settlements are taken and not given.
It sounds like the account has been charged off for about two months based on your comment. You may want to contact some CA attorneys who have experience with private student loan lawsuits to see if they think that is a valid defense. If the attorneys are just going to negotiate a settlement in litigation, it might make more sense to do that now instead of going through a lengthy and expensive litigation process.
Hey there, hope you are still active for a reply in regards to my situation. I attempted to make payments but Sallie Mae was very difficult with this process, so I made the young and dumb decision to ignore. The phone calls were relentless, at one point reaching 20 calls a day.
January of they got a single payment from me and nothing since. With my ever growing balances, nothing to show for the debt, and desire to go back to school I know I need to resolve this. Also may I also say that I actually did have legitimate financial hardship during most of the time preventing me from making payments, on top of there being no sensible way to pay over the phone from another country. Hi Chantel, from your description it sounds like these are federal loans. Only federal loans show up on that database.
Federal loans sometimes settle for a reduced amount of accrued interest, and rarely they will take a little off the original principal too. The settlements usually have to be paid in days also. You do have a lot of options for repayment plans. Federal student loans have several payment plans that are related to your income. These also have limitations on interest accrual built into them, and forgiveness periods of between years. However, the forgiven amount is taxable if you are financially solvent at the time of forgiveness.
Some of the criticism of these plans is that interest can accrue on them over time, even with the built in interest limitations, if your payment amount is very low compared to your overall balance. You would need to get the accounts out of default to be able to apply to these plans.
To get out of default, you can use Direct Consolidation or Rehabilitation. To learn more about your federal loan options, you can check out my free Ebook and federal loan resources page at http: The website to apply for these programs is http: I also have some of the paper applications posted on my website; you can apply by paper or through the studentloans.
The electronic application process is a little easier in my opinion I have federal loans too. Hi Chantel, I received your voicemail yesterday, but I was in negotiations all afternoon so I will try to call you back today.
Normally I am only able to do phone consultations with priate student loam borrowers since I am focused exclusively on private loans with my credit counseling practice, but I should be able to chat for a few minutes. If you need a more in depth consultation regarding your federal loan repayment strategy, we can refer you to a federal loan specialist who can take some time to evaluate your case and go over your options.
I do think that reading my ebook and going through the steps on my federal loan resource page would help clear up any confusion in the meantime. I am writing in hope to get your expert advice on my college loan situation. After graduating in , I tried so hard to stay in the US to find a job that can enable me to pay back my loan.
However, I could not find any job so I had no choice but returned to Vietnam. Moreover, I have to take care of my father financially who has stopped working for 20 years now due to his mental health. Therefore, I cannot save much. The school has contacted me many times but I have ignored them since they cancelled my loan deferment due to economic hardship and instead activated forbearance on my loan in I have not paid a dime to my school since I graduted in How can I negotiate with them for that?
If they want higher settlment amount, what other settlement options do I have to negotiate with them? If my school does not allow me to settle my debt for that amount but keep forcing me to pay full amount, I will have no choice but default on it. If so, what are the consequences of my decision considering that I have no plan to go back for graduate school or live in the US?
I know that they can always have the option of suing me, but how complicated or easy would it be for them if they decide to sue me while I am in Vietnam and they are in the US? Hi Mit, it sounds like these are institutional loans, or possibly federal loans.
Federal loans have very limited settlement options, if these happen to be federal. If these loans are federal, the balance will probably continue to accrue interest and late fees over time, and if you return to the US your wages or tax return could be garnished. This sounds like an issue that you would want to discuss with a Vietnamese attorney who has experience with US companies or the US government pursuing debts in your country.
Determining for sure whether these are Dept. But it definitely sounds like an issue to discuss with an attorney in Vietnam due to the complex nature of the problem and the fact that they have already taken the step of hiring an attorney in your country to try to collect.
Thanks so much for your reply. On the website of my school, it says that Student Financial Services department of my college grants Loans to students as part of the financial aid. The loans are administered by my college through ECSI. This interest rate is higher than the usual federal loans.
On paper, It does say that the creditor of my loan is my college. Repaying the bank is of course more important because I live in Vietnam now. If they do not agree for me to settle like that, there is nothing else I can do due to my limited economic conditions.
Or do I have any other options for negotiation? Thanks so much for your great support Andrew. You are the only one so far who give me such a detailed answer. ECSI does service federal loans, although from your description this does sound like an institutional, non-federal loan.
From my experience, no institutional loans will settle with that type of payment plan, although you could always try. Each school handles these loans differently, but in general that type of structured settlement is not usually available on these types of loans.
As far as other negotiating options, you could always call them and explain your situation, and see what is available. Each school uses different policies, and if you negotiate you may be able to work something out with them, and they may be more flexible since you are overseas. The only way to find out for sure is to give them a call, or talk to the lawyer that contacted you about the accounts.
Thanks for your reply. So it is definitely a non-federal loan. My school has refused to talk to me although I have contacted them for settlement negotiation. They have appointed me to talk to the Vietnam law agency directly instead. I have actually been talking to the lawyer for negotiation for several times. I have explained my current economic hardship, small salary, no assets, and need take care of my father financially as well.
However, the lawyer said my school has refused to accept my offer. He said the school would like me to repay the balance within 15 days starting from today, otherwise they would take legal action. Of course I cannot come up with that amount. Even if they sue me now, I would not be able to come up with that amount.
But I also think I am not a good target for litigation. From your experience, how do I go about to negotiate with them for me to settle for less than the balance owed.
What amount of the offer would they start listening to me? I mean what options for settlement do I have considering my tight financial situation? I am still looking for a Vietnamese lawyer who have experience in this, but it seems my case is not familiart to them, but I will keep looking for one.
Hi Mit, in negotiations you usually offer a lower amount than what you want to settle for. However, I think that the overall offer is much lower than what they are looking for. It sounds like they are hardballing you and trying to threaten you. Again I am not sure whether or not they would take legal action as this is an international contract law issue and not a situation I have heard about before.
Since they did go to the effort of finding an attorney in Vietnam to contact you, they may also go through with the effort of trying to take you to court. Once they come off forbearance in June, they Once they come off forbearance in June, they will want over 1, dollars to get in line, and they want per month after that.
I can't pay this, don' t they have ICR plans? I have over k in fed loans, but they have plenty of forebearance left, with the option of a Ford direct loan and ICR. Guess I'll just have to let the private loans go, after all, they can't have their cake and eat it too In addition, I'm between 40 and 50 years of age, with no assest, no home etc Please save the comments about quite smoking or drinkin, or why did you borrow them, etc I meant to say that I don't smoke or drink, or do anything extraneous.
Can they garnish wages if you don't have any one single job? I have as many 10 different jobs in a year, or do they just see the SS and attach it, unless your getting paid off the books. Are you sure you want to delete this answer? Then the banks lowers interest rates and makes monthly payments cheaper!
I would suggest you look into that! What was your question? Related Questions Consolidating private Sallie Mae student signature loans? Can private sallie mae signature student loans for c. Default private student loans sallie mae?
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