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I am looking for anyone who can share their advice and experience on negotiating partial loan forgiveness with Sallie Mae. Here briefly is my situation:
I am the co-signer on a $60K Sallie Mae student loan where the primary borrower has defaulted.
I want to negotiate a simple settlement with Sallie Mae (SLM): I am asking them to forgive some of the loan principal (20% or more), and in return I will pay off the rest in full. My goal is to reduce my loss, and end any loan liabilities with SLM.
It seems SLM cannot proactively work with me, they only have procedures in place for working with defaulted loans. I made the loan current with 2 payments, thinking this goodwill would make negotiation easier, but to no effect. The only advice I received from them was to let the loan go 120 days into default, then they will work with me. This sounds risky to me.
My question to everyone is: How do I best negotiate with Sallie Mae? What can I reasonably expect Sallie Mae to do for me? How would you advise I proceed? PLEASE SHARE YOUR ADVICE AND EXPERIENCES!
Thank you!
@Anonymous wrote:I am looking for anyone who can share their advice and experience on negotiating partial loan forgiveness with Sallie Mae. Here briefly is my situation:
I am the co-signer on a $60K Sallie Mae student loan where the primary borrower has defaulted.
I want to negotiate a simple settlement with Sallie Mae (SLM): I am asking them to forgive some of the loan principal (20% or more), and in return I will pay off the rest in full. My goal is to reduce my loss, and end any loan liabilities with SLM.
It seems SLM cannot proactively work with me, they only have procedures in place for working with defaulted loans. I made the loan current with 2 payments, thinking this goodwill would make negotiation easier, but to no effect. The only advice I received from them was to let the loan go 120 days into default, then they will work with me. This sounds risky to me.
My question to everyone is: How do I best negotiate with Sallie Mae? What can I reasonably expect Sallie Mae to do for me? How would you advise I proceed? PLEASE SHARE YOUR ADVICE AND EXPERIENCES!
Thank you!
Wonderin wrote:
If this is a government backed loan, call the DoE ... I'm not sure how it would all work, but in the end, if it's a gov loan, they're the ones who've guaranteed it (therefore, you'd really be settling with them!).
Wesley23 wrote:
I highly suggest you also mail your congressmen/women about the scam of non-dischargeable private school loans. This subject has been getting more press attention lately in the NYT and WSJ.
Message Edited by Wesley23 on 06-15-2008 04:21 AM
@LynnInMN wrote:
@Anonymous wrote:
I highly suggest you also mail your congressmen/women about the scam of non-dischargeable private school loans. This subject has been getting more press attention lately in the NYT and WSJ.
Message Edited by Wesley23 on 06-15-2008 04:21 AMWhy should private loans be dischargbeable in BK? I am not a big fan of private loans but they do serve a purpose...bridging the gap between federal aid and cost of attendance. Without them, a lot of students wouldnt be able to finish or even go to school. With the high rate of BK's nowadays, private loans would disappear if they became discharageable again. Big lenders are already pulling out of the program as it is.Education is the key to student loan management and borrowing. When I was working financial aid, I saw tons of students borrowing money to live in dorms, even though they only lived 12 miles from campus. The didnt want work study cause it would interfere with their social life. After 4 years of studying history, they would graduate and whine that they couldnt get a job. They had loans all over the place and would have no clue how to find them either. Yup, I got those calls too.
@LynnInMN wrote:
@Anonymous wrote:
I highly suggest you also mail your congressmen/women about the scam of non-dischargeable private school loans. This subject has been getting more press attention lately in the NYT and WSJ.
Message Edited by Wesley23 on 06-15-2008 04:21 AMWhy should private loans be dischargbeable in BK? I am not a big fan of private loans but they do serve a purpose...bridging the gap between federal aid and cost of attendance. Without them, a lot of students wouldnt be able to finish or even go to school. With the high rate of BK's nowadays, private loans would disappear if they became discharageable again. Big lenders are already pulling out of the program as it is.Education is the key to student loan management and borrowing. When I was working financial aid, I saw tons of students borrowing money to live in dorms, even though they only lived 12 miles from campus. The didnt want work study cause it would interfere with their social life. After 4 years of studying history, they would graduate and whine that they couldnt get a job. They had loans all over the place and would have no clue how to find them either. Yup, I got those calls too.