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Established Member
Posts: 20
Registered: ‎06-29-2017
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Navient Private Loan Default

I posted yesterday but didn't get any feedback here. Talked to a student loan debt attorney today and wanted to post what I was told in case anyone else is in the situation I'm in. My private loan has accumulated $15k in interest and is now a charge off on my credit report. I was making payments but Navient would not give me lower payments so I paid what I could afford. Now that they have charged it off they are willing to work with me and reduce the payments. Why is that? If I would have continued making payments before charge off at the 6% interest rate, I would have ended up paying them $47,000 on an original $12,000 loan. Now that I've defaulted and it's been charged off they can no longer collect interest so the most they can get is the $27k that is my current balance. As far as my credit, it took a big hit when they reported it charged off. On the flip side, by going into the settlement agreement with them the attorney said they have to update it as charged-off paying as agreed, and within 6 months I should see a rebound to my score. 

Valued Member
Posts: 47
Registered: ‎02-03-2016
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Re: Navient Private Loan Default

I believe that since all student loans are backed and guaranteed by the governemnt when you default they have options to get that money from the federal government. They are also allowed to settle the debt to resolve you of your obligation. So I believe they are required to get as much as acceptable from you and come to an agreement and once settled they can get the rest from the US governemnt. That is my understanding.

EX08 735 EQ08 714 TU08 731 Total Credit Line: $49,100Utilization: 8%Inquiries: EQ2 EX1 TU4
Frequent Contributor
Posts: 298
Registered: ‎12-07-2014
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Re: Navient Private Loan Default

Ram87o4, op stared this is private loan. Different rules, not backed by govt treated as debt like credit cards as far as credit report is concerned

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