Navient private student loan CO

[Anonymous]

Hello all,

Hello all, I consolidated a lot of student loans into one large loan that is serviced by Navient.  I have a private student loan that charged off at almost $18k.  This is set to fall off my credit report next year.  I was offered a settlement of $2500? by Navient's debt collectors.  I have a couple of questions:

This account still shows up in my navient portal with my consolidated loan as overdue by $9k. But it has no bearing on my paying my federal consolidated loan.  Is there any incentive to paying this since it will fall off in 8 months? Because my interest rate is in the 6.3% range on the federal loans, as soon as I rebuild my credit over the next year I will refinance with a different company (for a better rate) as this will no longer be on my credit.  

Thanks for any advice!

[FireMedic1]

I'll page @calyx for the best advice. Until then heres a great thread,

https://ficoforums.myfico.com/t5/Student-Loans/Navient-Private-Student-loan-Charged-off-Need-clarifi... 

[calyx]

It's a private loan, so yes, it will fall off of your credit reports if you don't pay.
You still owe the money, but there's just not much they can do about it.
If you ever need to borrow 150,000 or greater, the lender can pull a total credit report and it would show there, and, of course, Navient will still have it in their records - I'm not sure if they'd share that information with any lenders when you go to refi (or anywhere else).

Personally, I'd pay it just to make sure it doesn't show up somewhere weird in the future, but whether you do or not is totally up to you (no judgement, we all have our own paths to take).

[Anonymous]

Thank you both!

I would be applying for a mortgage in a year or so.  What shows up on a total credit report?  

This loan was originally 5k? $2500 isnt the worst deal since its ballooned to 18k.  Seems like paying it would make it pop back up on my credit report for 7 years.  I almost think Id rather have a good credit score; I have really high income, so that could offset an old collection skeleton they would find with a total credit report.  

[calyx]

Theoretically, that debt would show up on your "full" report, but it's not often pulled (from my understanding).  I just want you to be sure to understand that it could happen.
Paying it would not put it back on your report if it's about to fall off.   DOFD doesn't change if you pay it off, which is what sets that 7y timer.