Dealing debt collector for sally mae loan default

[fezwhy]

How does on go about this to get setup on a payment plan and to get the amount owed reduced? Call and ask for the best offer? It's a sally mae private loan that hasn't been paid on since 2009. This year it was reported as charged off on my credit report. I have heard of many people being offered much lower offers but the catch was they had to pay like 10% now and take the offer right away or leave it. What are everyone's experiences? This is the only thing left on my credit report negative. Once I start making payments will it show positive each month on my credit report?

[SCF]

I think the first step is to determine if the loan is still within the statute of limitations - if it is, your options will be more limited, because the lender still has the option to sue you and collect the amount through a judgment.  If it is out of the SoL, then they may be more willing to negotiate in an attempt to at least collect some of the debt.

How it will report is up to the lender - if you contract states that the loan is due in full once you default, they may not report positively again until you pay the loan off completely.  But it may be possible to arrange a payment plan and get them to report the loan back in good standing.  You'll have to contact Sallie Mae and see what options they offer you.

[fezwhy]

I am not sure about the sol. The first missed payment was in 2009. Sol where I live is 6 years. The loan was opened in 2006. I really just want to move on with my life but this loan is preventing me from getting a house.

[dman23]

Just researching the student loan thread as I have to look into paying off my student loan or rehabbing it. Anyway, I came across this on the web and it says there are no statute of limitations on federal student loans.

http://studentloanjustice.org/educate.htm

[SCF]

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@dman23 wrote:

Just researching the student loan thread as I have to look into paying off my student loan or rehabbing it. Anyway, I came across this on the web and it says there are no statute of limitations on federal student loans.

http://studentloanjustice.org/educate.htm

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That's correct, but the OP states that they have private loans, which are covered by the SOL.  Like federal loans, private loans cannot be discharged in bankruptcy without meeting a much higher standard to prove that paying the loan back would be an undue burden, but the lenders do have to secure a judgment before beginning garnishment and abide by the SOL.

[fezwhy]

So it's still within the sol I should wait to get a lower settlement amount. Last payment was made on 3/2009. So sol expires 3/2015. I might just wait until next year if it means I can save thousands of dollars off the loan. In the meantime it gives me time to build up my savings and pay in full.

[fezwhy]

I have been doing a lot of reading and it appears the negatives of this private student loan will fall off on 3/2016. I am concerned that in January this loan was listed as charged off on both Trans and equifax. Does that mean my sol is reset again and it starts all over?

[SCF]

The SOL and credit reporting limits are two different things.  SOL is set by the laws of your state (or possibly the state you borrowed the money in, if you live in a different state now, I'm honestly not sure).  Certain actions can reset the SOL, but they vary from state to state based on the type of contract for the debt.  I would find a good legal resource for your state and possibly consult with an attorney if you can't figure it out or have a complicated situation.

[fezwhy]

The name of the debt collector is integrity solutions