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Established Member
LLinsure
Posts: 17
Registered: ‎08-26-2009

Negotiate With Sallie Mae

Happy Friday! Hopefully someone can help me out or give me a little bit of insight.

 

I have two private Sallie Mae loans that I have not been late or missed a payment in the last 3 years. I have around $25K left and I have come into some money and want to pay off the loan in full so I can get it off my back. My questions are as follows:

 

1. Will they settle for a lesser amount? If so what should I expect them to offer? Or because I pay my bills, they wont do it. One loan is $13K and the other $12K

2. Will settling hurt my credit score. I have put in too much work to get it to a decent level so I dont want to do anything to hurt it.

 

Thank you and have a great weekend!

Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010

Re: Negotiate With Sallie Mae

 


LLinsure wrote:

Happy Friday! Hopefully someone can help me out or give me a little bit of insight.

 

I have two private Sallie Mae loans that I have not been late or missed a payment in the last 3 years. I have around $25K left and I have come into some money and want to pay off the loan in full so I can get it off my back. My questions are as follows:

 

1. Will they settle for a lesser amount? If so what should I expect them to offer? Or because I pay my bills, they wont do it. One loan is $13K and the other $12K

2. Will settling hurt my credit score. I have put in too much work to get it to a decent level so I dont want to do anything to hurt it.

 

Thank you and have a great weekend!


The only savings if any would be the interest on the balance owed. 

 

Good Luck
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New Contributor
taz3261
Posts: 66
Registered: ‎04-17-2007

Re: Negotiate With Sallie Mae

I really doubt they will take a settlement since it is a student loan...sallie mae is the worst people to work with. Every year they will make my payments less they are crooks in my eyes. All about profit!!!
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Senior Contributor
laz98
Posts: 4,291
Registered: ‎09-06-2008

Re: Negotiate With Sallie Mae

i can't imagine why they would negotiate with you to let you pay a lesser amount...then they are just losing money.

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Established Contributor
Tazman81
Posts: 711
Registered: ‎06-23-2010

Re: Negotiate With Sallie Mae

To put this into perspective, it is not just Sallie Mae that likely will not settle on a student loan.  Student loans normally have a guarantor, so if you do not pay the full amount, then the guarantor makes up the balance.  I am sure there is a clause that says Sallie Mae cannot do anything to "force" a payout from the guarantor.  If they allow you to "settle" for an amount less than what you owe, then that is what would happen.  They would be "forcing" a payment from the guarantor for the remaining balance.

 

Since student loans cannot be discharged in bankruptcy and they do not go away, there is no need for Sallie Mae, or any other bank that gives a student loan, to settle.  My suggestion would be to take some of that money and put away 3-6 months into savings for an emergency fund.  Then pay a bulk of it to the private loan (or any other loan) that you have which is the highest interest rate.

 

Now, when you send in the lump sum to pay the loan, make sure you call them and tell them to put all of that money to principal.  Sometimes when you send in a lump sum of money, a company likes to "hold" your money by pushing your due date out many months into the future.  You do not want this because then you will end up paying the same amount of interest as you would have normally because you won't have a payment due for many months.

 

Let us know how it goes.


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Frequent Contributor
gangof4
Posts: 310
Registered: ‎07-19-2010

Re: Negotiate With Sallie Mae

I would hope Sallie Mae would not negotiate a balance due (yours or mine.)  Taxpayers dollars likely subsidized your loan while you were in college as my loans were.  Anyone with money not only has the wherewithal to pay in full but a responsibility to pay as well.

Established Contributor
Tazman81
Posts: 711
Registered: ‎06-23-2010

Re: Negotiate With Sallie Mae


gangof4 wrote:

I would hope Sallie Mae would not negotiate a balance due (yours or mine.)  Taxpayers dollars likely subsidized your loan while you were in college as my loans were.  Anyone with money not only has the wherewithal to pay in full but a responsibility to pay as well.


To my knowledge, taxpayers dollars do not subsidize the interest on private loans.  That is usually just federal loans.


Starting Score: Eq: 662 Tu: 532 (03/02/2011) CH7BK 01/12/2009 Discharge
Current Score: Eq: 692 (04/03/2013) Tu: 717 (04/03/2013)
Goal Score: Eq: 720 Tu: 740

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Sabrina86
Posts: 1
Registered: ‎12-06-2011

Re: Negotiate With Sallie Mae

Hi,

 

we are in the same situation than the original poster, except that we are not really trying to negotiate anything, but just pay the d**** loan off in a lump sum, around $30,000.

 

Could you please let me know if you were successful in doing so?

 

Thanks



Community Leader
Senior Contributor
laz98
Posts: 4,291
Registered: ‎09-06-2008

Re: Negotiate With Sallie Mae

why do you think you wouldn't be able to pay it off?  i don't see why you would have any trouble.

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New Visitor
Math
Posts: 1
Registered: ‎06-28-2013

Re: Negotiate With Sallie Mae

You must have not been to college recently. Most loans are private, because federal loans dont cover enough, AND your TAXES have NOTHING to do with the crisis at hand. Actually, most people would be happy paying back their original amount with a small amount of interest... 10% interest is TOO MUCH on a 70k loan... and then Sallie can balloon the principal, they can do whatever they want... and this is fine with most people... as if "morally," your punishments for murder are less harsh, maybe students should just start feeling the country and not paying ANYTHING back, 

The reason you cant go bankrupt with student loans, is because the government wanted Sallie Mae and other lenders to lend at LOW INTEREST.... Sallie Mae and other lenders now have students by the balls, and decided to charge higher interest, knowing students can no longer escape with bankruptcy.


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