Private Student Loan Question

[LynnInMN]

Sallie Mae is a collection account charge off.  They have more than likely transfered it to their collection division so you will not see any balance decrease until it is paid in full. 

[Anonymous]

Yes I have talked to someone in collections they offered to settle for $2750; I do not have at this time. They also wanted my checking account info to start ACH. I declined on the latter since I'm sure they will wipe out my checking account. This is one of my major baddies that I've been working on for some time. And yes the interest rate is crazy 16.9%. If I could at least get it down to something workable I'b be able to get this paid off sooner than 3128

[LynnInMN]

With a $5400 balance at 16.9%, your interest would start at $76 per month....so your balance would get going up each month instead of down. 

[rdame]

All federal student loan programs are mandated to have a default recovery program.  They will not tell you about this, you need to ask.  I had a parent plus student loan in default.  After things got better I was paying it on time for a long period of time.  I found out that federally guaranteed student loans have a "mandated" default recovery program.  I participated and my default tell off mycredit report once I satisfied the default requirements and the loan was reissued to a lender.  This does not make the loan go away, nor does it clear any bad marks from "previous lenders of the loan that have transfered it to other holders" but the actual loan default goes away as if it were never there.  Thypically the terms are you get an figure that you must pay each month.  You must pay on time each and every month for 12 months.  Once you satisfy the agreement, the loan is put back out to lenders as a new loan with the current federal loan interest rate, typically lower than free market.  If you make a late payment during the recovery period, even by a day, then the recovery clock starts again and you have to make the payments for twelve months.  The default does not come off your report until you satisfy the default recovery agreement, and the loan is reissued to a student loan lender.  Good luck.  It worked for me and my score recieved a significant boost.  Bear in mind that if you get a cash windfall, or even if you make regular payments and clear the loan, the default will stay on your report as a derogatory mark.  To get the default to go away you must participate in a default recovery program.  In this case the government did a good thing and made it possible to fix your mistake.....

[LynnInMN]

---

rdame wrote:

All federal student loan programs are mandated to have a default recovery program.  They will not tell you about this, you need to ask.  I had a parent plus student loan in default.  After things got better I was paying it on time for a long period of time.  I found out that federally guaranteed student loans have a "mandated" default recovery program.  I participated and my default tell off mycredit report once I satisfied the default requirements and the loan was reissued to a lender.  This does not make the loan go away, nor does it clear any bad marks from "previous lenders of the loan that have transfered it to other holders" but the actual loan default goes away as if it were never there.  Thypically the terms are you get an figure that you must pay each month.  You must pay on time each and every month for 12 months.  Once you satisfy the agreement, the loan is put back out to lenders as a new loan with the current federal loan interest rate, typically lower than free market.  If you make a late payment during the recovery period, even by a day, then the recovery clock starts again and you have to make the payments for twelve months.  The default does not come off your report until you satisfy the default recovery agreement, and the loan is reissued to a student loan lender.  Good luck.  It worked for me and my score recieved a significant boost.  Bear in mind that if you get a cash windfall, or even if you make regular payments and clear the loan, the default will stay on your report as a derogatory mark.  To get the default to go away you must participate in a default recovery program.  In this case the government did a good thing and made it possible to fix your mistake.....

---

If you had read the thread,  this is a PRIVATE loan,  not a federal student loan so there is no federally mandated recovery program.  

Besides,  rehab is 9 months now,  not 12.

[Anonymous]

SL has just moved this from a charged off account to an account that is 120 days late? Is the late "a little better" than a charge off? I know they are both bad. Thanks

[niecey89]

Bigmomma3, i am going through the same problem with my SLM private loan. The collection agency wants $6855 with in 3 months or $4287 by then of August (that is this weekend). Oh the loan ballooned to $8564. Just got off the phone with them. I just talked her into $75-100 a month until I can down to where they can settle the account. I told the supervisor that if i had the settlement money that they wanted I would have paid Sallie Mae directly. Good Luck because i know how you feel and what you are going through.