Sallie Mae / Navient - Defaulted Private Student Loans

[Anonymous]

Long time lurker, first time poster.

Wanted to say thank you for all the helpful insight, and hopefully maybe some clarity on a couple of questions that I have. I had 4 private student loans with Sallie Mae which unfortunately has now been in default and has continually reporeted month after month as a c/o for several years. I'm currently trying to clean up my credit and would like to know how to tackle the following loans:

               Original      Current      Int %

Loan 1  $5,000        $9,300       9.75%

Loan 2  $2,600        $4,122       9.25%

Loan 3  $2,200        $3,751       9.25%

Loan 4  $2,968        $5,448       9.75%

I would like to contact Navient to see what my options are, but because of the current status of the loans, am also nervous of potentially saying the wrong thing. These are by far my oldest lines on my credit report as they originated in 2006.

The DOFD on all the loans was 08/2010.

I have thought about potentially consolidating all of these loans into one loan with a lower interest rate, but then I figured I could take a big hit on my score due to the age of the accounts.

My questions are:

1) I received these loans while living in NYS and attentding school there. I currently live in FL. Does the SOL pertain to where the debt was incurred or where you are currently living?

2) Would my best option be to rehabilitate this loan? Consolidate it? Ask for a PFD for a substantially lower amount?

As I had mentioned, I am trying to clean up my credit and by taking care of these loans, if I were to pay some sort of lumpsum, it would pretty much wipe me out of taking care of other negative options. I guess I'm trying at this point to look for the best "bang for my buck" if you will.

Thank you for help.

[Anonymous]

With your dates listed of DOFD, usually the SOL falls under the state you created the agreement with. Since, thats the address you lived and where you schooled. As far as consolidating, it wont neccessarily take a big hit on AAofA since they will be paid off and still reported on your credit file. You will dip a little bit only because the new loans age. It is far better if you can get the interest lowered and only worry about 1 loan. The savings are definately worth it. On a side note: most wont advise this because it is YOUR DEBT. But you are close to your 7 year mark. Private loans can be discharged from your credit report unlike federal loans. You will however still OWE THE MONEY! Just wont be listed under normal reports. So if you can stand to see it listed for a little while longer, that is an option as well. Choose wisely!

[Anonymous]

Thank you for the response.

Those concerns are where my dilemna lies. I do want to purchase a home within the next 1-2 years and since however you slice it, it is my debt, I think consolidating it into 1 loan and less of an interest rate might be the best way for me to go.