Student Loan & Northstar Location Services

[Anonymous]

Hello -

I have an account from Navient (formerly Sallie Mae) for a student loan which has a balance of $3,000 but is listed as charged off. I received a letter from Northstar Location Services saying that I can settle this debt for $300. I don't have a collection account listed from Northstar on my report--just the original account. It is set to reach the seven year limit in October.

However, I'm currently trying to buy a house and need to take care of the outstanding balance on the Navient account before I can get a loan.

My question would be should I go ahead and settle with Northstar and get confirmation the original account has been settled and will show a $0 balance now? If I do, will the original account still drop off my report in October or restart the seven year period??

Or should I risk waiting till October and possibly not getting the house I'm wanting?

Thanks!

[RobertEG]

Is it a federal student loan?

If so, the normal exclusion date of 7 years plus 180 days from DOFD does not apply if the debt remains delinquent.

Once paid, the normal exclusion period applies.

It will then be based only on DOFD, and thus paying will not reset the exclusion period.

[Anonymous]

No. It is a private student loan.

[Anonymous]

I would either do a DV with Northstar, or contact Navient to make sure that the deal is legitimate and will clear the debt.

[righthererightnow]

I would beware.. if it's  not listed on your account. Collections should be posted.

[Anonymous]

Not all collections show up on your CR.  I'm paying on two right now to keep them off my report.  There is nothing that says they must report.

[Anonymous]

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@Anonymous wrote:

I would either do a DV with Northstar, or contact Navient to make sure that the deal is legitimate and will clear the debt.

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^^^^ This. You need to make sure these people are legitimate collectors with authorization to make such a settlement.