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Student Loan Garnishment

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Anonymous
Not applicable

Student Loan Garnishment

Is it better to Rehab a loan that is currently in wage garnishment or pay the lump sum which would be about a 20% discount since the wave the collection fees? Thank you!

Message 1 of 5
4 REPLIES 4
bstone
Frequent Contributor

Re: Student Loan Garnishment

Get it in writing before making any settlement.  When I did student loan collections one tactic was to offer a settlement, we would tell them "pay "X" amount and we won't try to collect on this debt any longer".  Well, that was true, we just sent the debt back to the OC and they sent it to another agency.  Student loans don't go away, rarely can they be discharged in bankruptcy, and they certainly don't accept settlements.  Now, if the CA is willing to remove their fees that's a possibility, but I highly doubt it.  What company works for free?

 

If you can get them to put it in writing the remainder of the debt is vacated upon paying your settlement, then I'd take it.

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Message 2 of 5
Anonymous
Not applicable

Re: Student Loan Garnishment

I would rehab the loans because then the negative history gets removed and should help improve your scores

Message 3 of 5
Anonymous
Not applicable

Re: Student Loan Garnishment

Thank You for your advice. I think I will go that route too.

Message 4 of 5
Whitneyy
Valued Contributor

Re: Student Loan Garnishment


@Anonymous wrote:

I would rehab the loans because then the negative history gets removed and should help improve your scores


I definitely agree with this route!

GOAL - 700 FICO across the board!
Message 5 of 5
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