Thank you everyone for contributing. I keep reading the forums daily to learn more about rebuilding my credit.
I have two private Sallie Mae loans with a total balance of $24k. They have been reporting charged off for the past several years, reporting monthly. The collection agency offered a settlement for $7k, but I don't have the money to settle it. They then offered a interest reduction program, that would reduce the interest to 0.001% as long as payments were being made on time. They stated the loan would report as being on "modified paymetn agreement" but would report as "current" monthly. I couldn't do the downpayment of $2,500 and $250 monthly so I called the Sallie Mae Advocate. They were able to work with me and offered the same program for $125 a month with no down payment, but I would need to call the collection agency and schedule my paymetns with them.
I called the collection agency (Integrity Solutions) and now they are stating that the loans will keep reporting as Charged Off monthly but in the comments section, it will state that I'm on a modified payment agreement. I called the Sallie Mae Advocate back and they confirmed that the loan will still show charged off every month. SOL is 1 year away from expiring and the loans will fall off my credit at end of 2015.
I would really like for it to start showing as being paid of time but I don't see any options. (Main reason is for employment purposes, I'm looking at applying for few jobs and anything over $7500 that is in deafault will be a disqualifier).
I can' t take out a loan to settle as my credit is in the low 500s.
On a positive note, I have four collections, and one of them agreeded to PFD at 50% of settlement. :-) Thank you to this forum for that.
Does anyone have any ideas on how to proceed with this? Any input would be appriciated.
