HELP-Navient called and my student loan defaulted AGAIN...

[HigherFico]

A very nice gentleman from Navient called and told me that my student loan defaulted-which I already knew but I was waiting for him to call me back. He let me pay $20 to keep the account his department and he asked me how much I could afford each month. I told him an amount and he said sure no problem.  He was basically willing to accerpt any amount I told him. He said this that I could pay that for the life of my loan.

What are you ideas on this? 

So I'm guessing my students loan will say 'In Default' the entire loan-forever until I am able to settle with them?

Please offer advice and how will this affect my credit in the future? Will I ever be able to get another credit card or put my name on a mortgage or car loan? 

Advice please!

By the way this is a private loan.

[Anonymous]

Have you been through rehabilitation already on that loan? If you have, then unfortunately it can remain on your reports until it is paid in full, past the 7 year exclusion.

I think they key in learning here is that you should call them before it gets to a point where you are defaulting.

[Anonymous]

Was it Navient or a 3rd party debt collector acting on Navient's behalf?

[HigherFico]

It am pretty sure it was navient. But maybe I should check again. It was a while ago that I got the call...

[Anonymous]

When I graduated from ITT Tech in 2009, at the height of the recession they demanded $1400 a month on a dozen separate loans, each with different interest rates, due dates, and amounts. There is no way to consolidate or negotiate fair amounts with even one or two of these, much less a dozen.

[RobertEG]

Is this a federal or private student loan?

Default has an explicit definition for federal student loans that the delinquency has reached 270 days.

A default status can be removed if the consumer completes a specific rehab program, which is usually making 10-12 timely payments.

It does not appear what they are offering is a rehab program, as it is not for the set period of successful payments under the federal rehab guidelines, and is not for the purpose of removing the federal default status.

Apparently, it is a private student loan, and they are offering a payment modification plan to avoid sending to collections or bringing civil suit?

[Sneakytiki]

I went through this with Navient/Sallie Mae a number of times with 3 of my private loans. They had been in and out of forbearance, they would backdate forbearance to cover lates and remove them etc. Once I ran out I would miss 2-3 payments in a row a couple times a year and this went on for 3 years. Thats a ton of 30/60/90 day lates. 

Once I finally called them and said I wanted to fix everything they allowed me to make 12 or one year of payments and they just deleted all of the negative information from my 4 loans (one was federal and that one was 150/180 days late). So I have quite a few blank spots in my credit reports but they are now reporting as never late. 

If I remember correctly, they stated that 30 days late was considered in default and the loan went to their internal collections department because they do not report late until 45 days past due or some reason like that. ETA: It may have been 90 days too, I just remember that I pretty much called them at the last second. 

There may still be hope for those loans if its early enough. They seem to be forgiving if you are serious about it, they may even extend your repayment plan or allow you to do an income based repayment program too.