My DW has a charged off Sallie Mae/Navient loan with a balance of over $10K (but less than $20K)
She received a letter from NES Ohio with a settlement offer for a one time payment of about 25% of the debt. The letter states that the remainder of the balance will be forgiven and Sallie Mae/Navient will mark the loan as "settled" with the CRA's upon completion of the settlement.
This loan IS still within the SOL, and has been reporting rolling 90 day lates since it defaulted years ago.
I think this is a no-brainer to settle, but just wanted to throw it out there to the forum members to see if there is anything we need to be aware of before settling this account.
I realize she will probably get a 1099 for the forgiven amount.
I can do a BT check to an account for the settlement offer $$ at 0% until 2017.
Thoughts?
Starting Score: EQ 641, TU ???, EX ??? (myfico 6/7/13)
@SCF wrote:I think it might be worth a counter-offer for a pay-for-delete to get the collection account fully off her report - a settled collection account does not neccesarily improve your credit score (I think the newer models might handle those differently?). This is a good question to research in the Rebuilding Your Credit forum here - private student loans work a lot like other installment debt in this type of situation, so you can use much of the same advice.
The CA (NES) has never appeared on her CR. The only tradeline on her report is the Sallie Mae/Navient one that has been updating monthly with rolling 90 day lates since it defaulted in 2009,
Having dealt with Sallie Mae/Navient before on my own private loan, my hopes of getting them to do a PFD are ZILCH.......