topic Re: My Boss has offered to Pay my Student Loan - Please help how to do this in Rebuilding Your Credit

My Boss has offered to Pay my Student Loan - Please help how to do this

ba6412 — Thu, 12 Nov 2015 13:47:12 GMT

Good morning,

I have $13,000.00 in student loans and this is on my credit report.

I want to buy a house next year and this is a burden on me. My score has gone down to 500!

What is the best way for me to get my credit up? Should my boss pay the $13K in a lump sum, or is it better for my credit to just make a repayment schedule and make payements each month? I would prefer to have it removed from my credit report.

Please, any help would be so much appreciated, as I have to make a decision soon. It was turned over to the Michigan Guarantee Agency for them to come after my paychecks!

Please and thank you.

James

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

takeshi74 — Thu, 12 Nov 2015 14:02:24 GMT

So your student loans were turned over to a collection agency? If so, you'll want to see if you can negotiate a pay for delete. Carefully research in the Rebuilding subforum.

When was the last time you pulled and reviewed all 3 reports? Where are you getting the score from? What scoring model? What CRA? Keep in mind that you don't have just one score. Typically for a given model you have a score with each of the 3 major CRA's. Also keep in mind that mortgage lenders do not use the more common FICO 8 model.

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

ba6412 — Thu, 12 Nov 2015 14:13:50 GMT

Thank you for your reply. I ran my 3 credit report 5 months ago. I can see these student loans on all reports.

So, the best solution would be for me to call the Michigan Guarantee Agency and ask them if I pay the whole defaulted loan to delete it off of my report??

I am not very savvy when it comes to my credit report, but I know to buy my first house that I need to get rid of this on my report, then I only have $1,800 in other debt to pay off and get off of my credit report and start building credit.

Please any advice is so helpful..

Thank you!!!

James

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

Anonymous — Thu, 12 Nov 2015 15:45:59 GMT

Hi James. Good luck with your rebuilding process. Takeshi is an old hand here so everything he told is completely on target.

Quick question: would you say that you fully understand who all the "players" are in this credit reporting and scoring world? For example do you fully understand who TransUnion, Equifax, and Experian are? (They are what people call "CRAs.") Do you understand what FICO is and its role, and how it is different from the CRAs?

It's ok if you don't have a full handle on that. If you don't, that's the first thing you need to work on: i.e. understanding the basics of credit reports and scores, before you try to make decisions or even talk about the decisions you could make. (You won't be able to properly understand what your options are if you don't first have a basic framework.)

Let us know if you feel like you understand all that. If you don't, we can help.

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

ba6412 — Thu, 12 Nov 2015 16:39:37 GMT

Thank you very much for your reply as well.

I don't understand it fully to an extent. I know about the 3 different CRA's. I paid for the 3 Bureau report and can see that my debts are on each of the reports. I know that part of getting debts off of your reports are:

A. Paying them

B. Writing letter to the CRAs to get the debt removed from my reports

That is basically all I know. I believe my FICO credit score is determined by the collection of my 3 CRA scores??

Thank you so much for your help. I just need to make a decision quick about paying off this student loan. Whether to pay all 13K right now or to setup payment plan. Paying it all right now is an option. And I would like to do that if you think it will help my credit score quicker.

As I stated, I would like to purchase my first house next Fall 2016.

Please let me know your thoughts.

Thank you.

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

Anonymous — Thu, 12 Nov 2015 17:16:14 GMT

OK James. THe problem as I see it is that you want two things: (1) to do the thing that will benefit you the most and (2) to make that decision extremely fast.

The two things are in tension because making the best decision (in credit as in most areas of life) requires you to spend some time getting the mental equipment to make the best decision.

Is the intense need for speed here because you think your boss will withdraw the offer if you don't immediately spell out to him exactly what you want done?

Takeshi and I have had to make some guesses about what was going on, partly because you don't yet understand credit reports well enough to describe your situation. For example, we are guessing that you stopped paying your student loans, that they then became what are called "negatives" or "derogatories" on your reports, and that the failure to pay eventually resulted in them being turned over to what is called a "collection agency" which in turn caused them to become VERY big negatives.

That's all guesswork on our part, because you don't understand your own credit situation well enough to tell us exactly what is going on.. It sounds also like you are basing what you do know off of credit reports run five months ago.

Here is my advice.

(1) I suggest you go to a site called Credit Karma. You can subscribe to their service for free and it will not hurt your credit reports or score to do that. Once you join, you will be able to pull your TransUnion (TU) and Equifax (EQ) report. You can pull them as often as once a week. Until you get some resolutioon on your situation, you should be pulling those reports weekly so that you have an idea what is going on.

(2) Print out both the full EQ and TU report. Use Google to find resources to help you understand them. Google things like UNDERSTANDING MY CREDIT REPORT and other searches you can think of.

(3) Go to the "Rebuilding" subforum on this site and describe exactly what is going on (but only after you have your reports and and have spent some time learning how to read them). The ideal thing for you is probably (Takeshi and I are guessing) something called a PAY FOR DELETE. This is where someone (you, your boss, etc.) offers to pay the full amount owed, but in return the collection agency or original creditor agrees to delete the bad record from all three reports. You have to be VERY careful doing this. The people in the rebuilding forum can help you. The risk is that the creditor will take your money and then NOT delete the bad record. So this has to be a carefully negotiated agreement and you will need some help doing that (from the rebuilding folks).

Note that the PAY FOR DELETE is not something you are entitled to. It's something you have to convince the creditor or collection agency to do. Furthermore understand that the entity you would be negotiating with is NOT the CRA, but the creditor or collection agency (the holder of the debt).

Bottom line (we are guessing) is that the best thing for you is a lump sum Pay For Delete (if you have a white knight willing to step in and pay it off for you). Follow the steps above and that will likely be your best shot. Good luck.

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

thom02099 — Thu, 12 Nov 2015 18:41:16 GMT

@Anonymous wrote:
OK James. THe problem as I see it is that you want two things: (1) to do the thing that will benefit you the most and (2) to make that decision extremely fast.

The two things are in tension because making the best decision (in credit as in most areas of life) requires you to spend some time getting the mental equipment to make the best decision.

Is the intense need for speed here because you think your boss will withdraw the offer if you don't immediately spell out to him exactly what you want done?

Takeshi and I have had to make some guesses about what was going on, partly because you don't yet understand credit reports well enough to describe your situation. For example, we are guessing that you stopped paying your student loans, that they then became what are called "negatives" or "derogatories" on your reports, and that the failure to pay eventually resulted in them being turned over to what is called a "collection agency" which in turn caused them to become VERY big negatives.

That's all guesswork on our part, because you don't understand your own credit situation well enough to tell us exactly what is going on.. It sounds also like you are basing what you do know off of credit reports run five months ago.

Here is my advice.

(1) I suggest you go to a site called Credit Karma. You can subscribe to their service for free and it will not hurt your credit reports or score to do that. Once you join, you will be able to pull your TransUnion (TU) and Equifax (EQ) report. You can pull them as often as once a week. Until you get some resolutioon on your situation, you should be pulling those reports weekly so that you have an idea what is going on.

(2) Print out both the full EQ and TU report. Use Google to find resources to help you understand them. Google things like UNDERSTANDING MY CREDIT REPORT and other searches you can think of.

(3) Go to the "Rebuilding" subforum on this site and describe exactly what is going on (but only after you have your reports and and have spent some time learning how to read them). The ideal thing for you is probably (Takeshi and I are guessing) something called a PAY FOR DELETE. This is where someone (you, your boss, etc.) offers to pay the full amount owed, but in return the collection agency or original creditor agrees to delete the bad record from all three reports. You have to be VERY careful doing this. The people in the rebuilding forum can help you. The risk is that the creditor will take your money and then NOT delete the bad record. So this has to be a carefully negotiated agreement and you will need some help doing that (from the rebuilding folks).

Note that the PAY FOR DELETE is not something you are entitled to. It's something you have to convince the creditor or collection agency to do. Furthermore understand that the entity you would be negotiating with is NOT the CRA, but the creditor or collection agency (the holder of the debt).

Bottom line (we are guessing) is that the best thing for you is a lump sum Pay For Delete (if you have a white knight willing to step in and pay it off for you). Follow the steps above and that will likely be your best shot. Good luck.

AND....get any sort of agreement for pay for delete IN WRITING! Once you get that, you can move quickly to get it paid off.

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

stellar — Thu, 12 Nov 2015 22:52:42 GMT

One thing that hasn't been addressed: WHY is your boss agreeing to pay this huge debt for you????

Be very careful accepting large gifts from people. Most people will use it to control or manipulate you in some way or another. What is your boss getting from you???

Me personally, I prefer to keep my independence and handle things on my own. I would contact the debt collector or original creditor and make payment arrangements. I would see if they would remove the negative info from my credit report in exchange for a payment arrangement.

Another note: do not give the debt collector your bank account information...they have been known to clean out your bank account.

Best of luck!

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

Anonymous — Fri, 13 Nov 2015 00:23:47 GMT

who was the oc of your student loans ?

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

Anonymous — Fri, 13 Nov 2015 04:40:22 GMT

Are these private or Federal student loans? I'm assuming that they are private. When was the date of final delinquency (DOFD)? And when is this expected to fall off your record?

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

Anonymous — Fri, 13 Nov 2015 04:42:20 GMT

Rehab, rehab, rehab, rehab, rehab,rehab,rehab,rehab,rehab,rehab,rehab,rehab,rehab,rehab,rehab,rehab,rehab,.

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

ba6412 — Fri, 13 Nov 2015 14:06:17 GMT

Hi again,

Thank you for all of the replies. Everything has been very helpful. I made a lot of phone calls yesterday to my debt collectors.

I have found the following out:

1. A Guarantee Agency bought our my Student Loans. They total $13,600.00.

2. I have 5 counts of Medical Bills that have gone years past due and are also on my report. They total $3,000.00

I have read up on my options for 'Pay for Delete'. I have the total $16,600.00 to pay all of it off. I want to do it the right way though. I don't just want to be out of debt. I also want my credit to start rising, as I would like to buy a house in 1 year.

What is the best way to approach the debt collectors and get them to allow me to use a 'Pay for Delete' option? I want to be strategic and make sure I can get these off of my credit report.

Please let me know if you have any questions that will help you better answer mine.

Thank you again!

James

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

ba6412 — Fri, 13 Nov 2015 14:08:00 GMT

Also, my Student Loans are through Nelnet (which is Sallie Mae).

Also, why did the gentleman before me say Rehab a bunch of times, if I have the full amount to pay the debt off??

Thank you,

James

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

Anonymous — Fri, 13 Nov 2015 14:48:12 GMT

When a student loan goes through rehab successfully then they remove the late and other derogatory marks.

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

Anonymous — Fri, 13 Nov 2015 16:10:14 GMT

@ba6412 wrote:
Also, my Student Loans are through Nelnet (which is Sallie Mae).

Also, why did the gentleman before me say Rehab a bunch of times, if I have the full amount to pay the debt off??

Thank you,

James

If you rehab the loan all of the derogatory marks will be removed. If you just pay it off all of the lates and the default will remain for 7 years.

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

Anonymous — Fri, 13 Nov 2015 16:11:26 GMT

@ba6412 wrote:
Also, my Student Loans are through Nelnet (which is Sallie Mae).

Also, why did the gentleman before me say Rehab a bunch of times, if I have the full amount to pay the debt off??

Thank you,

James

Because if you just pay the CA you'll still have all the bad reporting on them. OTOH, if you rehab them, all negative reporting is removed, and they become positive accounts.

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

Anonymous — Fri, 13 Nov 2015 16:14:10 GMT

Rehab them to get all the negatives removed.....then just pay it off. That way you get a positive line - and it's paid in full.

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

ba6412 — Fri, 13 Nov 2015 21:48:11 GMT

I already rehabbed the loans early last year. I then stopped paying on them. I was told by people I spoke with at Nelnet (Sallie Mae) that if I do not pay the amount in full now by Dec. 23rd, that I will get an I-9 on my credit report, which from what I have read is the worst marking you can get with a student loan.

I paid the amount off in full.

As for the medical bills, only 2 out of the 5 bills was I able to get a 'Pay for Delete'. The other 3 Collection Agencies stated that they do not allow anyone to use the 'Pay for Delete' option, because their company does not allow that and that it is against guidelines.

So how can I get these off of my credit report now that they are paid? I have read that I may need to write letters to the 3 credit bureus. Is that correct?

Any advice helps.

Thank you all again,

James

Re: My Boss has offered to Pay my Student Loan - Please help how to do this

Rebuilding69 — Fri, 13 Nov 2015 22:36:00 GMT

@ba6412 wrote:
I already rehabbed the loans early last year. I then stopped paying on them. I was told by people I spoke with at Nelnet (Sallie Mae) that if I do not pay the amount in full now by Dec. 23rd, that I will get an I-9 on my credit report, which from what I have read is the worst marking you can get with a student loan.

I paid the amount off in full.

As for the medical bills, only 2 out of the 5 bills was I able to get a 'Pay for Delete'. The other 3 Collection Agencies stated that they do not allow anyone to use the 'Pay for Delete' option, because their company does not allow that and that it is against guidelines.

So how can I get these off of my credit report now that they are paid? I have read that I may need to write letters to the 3 credit bureus. Is that correct?

Any advice helps.

Thank you all again,

James

No, you don't write letters to the credit bureaus for Goodwills. You write them to the entity listed on your credit report, since that is who the collection is listed with. Since these are medical bills, you can also utilize the HIPAA(whychat) method to get them removed. You'll need to google that since we can't get into specifics on how to go about doing that on these boards.

P.S. - It helps us when asking for help if you leave all pertinent info in your thread at the beginning instead of leaving breadcrumbs for us to find.