top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Who do I settle student loans with?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Who do I settle student loans with?

    I have Sallie Mae loans that have been in default for a few years now and I am looking to settle with them. Who do I ask for a settlement, the bill collectors or Navient who I think took over Sallie Mae? I have different debt collectors calling me so I am confused as to who actually settles these accounts.

    Problem is ever since I moved I never changed my address because I can't afford a po box so I don't know if someone already tried to sue me or even offer me a settlement already.

    #2
    Sallie Mae (now called Navient) is both a lender and a servicer (a company which handles the billing, customer service and collections on loans which are owned by other entities). They not only are/were in the private student loan business, but are also one of the contracted servicers for the US Department of Education. Therefore, it is important for us to know what kind of student loans you have.

    If your student loans are from the federal government, then there is no such thing as settling or renegotiating the balance. There is also no statute of limitations on being sued for the money or on collections. You can even have funds withheld from your Social Security if you still have unpaid federal student loans at the time you retire.

    If your student loans are from a private bank or finance company, then it MAY be possible to settle or renegotiate the balance, especially if the loan has already been transferred back to the guarantor agency, and they have been unsuccessful in collecting for a long time. The standard statute of limitations for unsecured consumer debt applies to private student loans, both with regard to filing a lawsuit, and with regard to how long a judgment lasts for, and can be renewed for. In many states, a judgment can be renewed forever, but in some states it can only be renewed once or not at all.

    Comment

    bottom Ad Widget

    Collapse
    Working...
    X