Reply
New Member
Posts: 2
Registered: ‎06-28-2013
0

Sallie Mae loans

I lost my job in August. Thus I haven't been able to make a payment since then (it is June). Of course the account was charged off ($65,000). i haven't been able to find work. I moved back home after I lost my job and the situation is depressing. I got a call from the collection man today. He wants to put me in the program with $450 payments for 0.something % interest or settle for $27,000. I want to save my credit as much as possible. What should I do since I can't take either option right now without a job?

Established Contributor
Posts: 731
Registered: ‎08-12-2011
0

Re: Sallie Mae loans

[ Edited ]

Are these Federal or private loans? Have you for sure defaulted on these loans now?

Federal loans have deferment and forbearance options, like hardship deferment which can be used to postpone payment due for up to 12 months at a time. You have to reapply yearly and there are limits on the number of consecutive years for certain types. If you have defaulted and these loans have been completely turned over to collections, then these options are not available right now.

 

Good new is that Federal loans can be rehabilitated after default. Once you get back on your feet, you can negotiate rehabilitation terms. After at least 9 months of payments, the loans are picked up by a new lender and you will have new positive loan accounts. The default / charged off status should be updated on the old loan accounts also. Late payment remarks will highly likely remain though unless you are lucky and they are updated to positive or the old loan accounts are deleted entirely.

 

If these are private loans, I do not personally know if rehabilitation programs exist. My gut says they don't. I have less knowledge of these types of loans so I can't provide much info on how to negotiate settlements or payment plans, etc.

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.