Defaulted on a Private Student Loan

[nore617]

I defaulted with Sallie Mae with 17k, I got overwhelmed with responsibility, and gave up. Now Im working back again and have the desire to pay these people back to raise my scores up, however I worry shaking these accounts up since they all charged off (no good). I tried to work with them, but they not willing to negotiate to bring it up current, what should I do.??? What can happen to my score if they change the status to something else. Should I wait the entire 7 years? And then start paying, or pay them now?

[scvbd99]

Was the loan actually charged off as you said?  We have to know the current status of the loan before we can give any advice.  The answer will be different if you paid for a charge off than it would be if the loan is still open and accruing interest and collection charges. 

Please clarify.  

[nore617]

Well, the loan is not paid, and the status its "charged off"

[SCF]

You need to determine two things:

1) When did the loan first go late leading to the default?  That is the DOFD and will let you calculate how long it will remain on your report.

2) What state's staute of limitation laws apply to this loan, and how long until the loan is outside the SoL?  Depending on the relevant state laws, certain actions may restart or extend the SoL, and you'll want to be aware of how anything you do can impact that timeline.

If the loan is still within the SoL, they can sue you and subsequently garnish your wages.

[nore617]

Fed Loan was on a way to wage garnishment, but I started paying them, so I am fine with them. The loan started going late in 2010, It says that it will stay till feb 2017.As far is the SoL goes Im in Massachusetts and idk the how that applies here, which was the state I took the loan out.