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Navient/American Student Assistance Defaulted, what do I do from here?

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Established Member

Navient/American Student Assistance Defaulted, what do I do from here?

I had a few federal loans (Stafford and Perkins) from Navient (Sallie Mae) that are being serviced by American Student Assistance. They were consolidated into an FFEL and were defaulted because I moved overseas and the bank account they were being paid from got closed.

 

I want to pay them and rebuild my credit. What is the best course of action here? Should I apply for a consolidation and just pay the loan?

Message 1 of 6
5 REPLIES 5
Valued Contributor

Re: Navient/American Student Assistance Charge-off, what do I do from here?

Get on the National Student Loan Data System and figure out who currently holds your loans and their contact information.  You can choose between consolidation or rehab as a way to consolidate the default - and you set up either solution with the collection agency or agencies that currently holds your loans.  Consolidation will get your loans back into good standing quickly, but lacks the benefits of rehab.

 

If you make the 9 months of rehab payments your new loan tradeline will be backdated to the original open date of your loan, which can boost your AAoA, the collection costs on the loan will also be reduced, so you will save some money overall.

Message 2 of 6
Established Member

Re: Navient/American Student Assistance Charge-off, what do I do from here?

Uh oh, I already started the application process to consolidate on studentloans.gov. Should I stop that and try to rehab? I called both Navient and American Student Assistance, Navient says my debt is being held by GC Services and ASA says my debt is being held by FH Cann but from what I understand these two collection agencies are trying to collect on the same debt. Who should I deal with to rehab?

Thanks
Message 3 of 6
Established Member

Re: Navient/American Student Assistance Charge-off, what do I do from here?

Looked deeper into my loans and here are the details:

I have a federal FFEL consolidated loan that is being collected by American Student Assistance and FH Cann (collection agency):

 

Current Servicer: NAVIENT SOLUTIONS, INC.  
Current Lender: DEUTSCHE BANK ELT NAVIENT & SLM TRUSTS 
Current Guaranty Agency: AMERICAN STUDENT ASSISTANCE  

 

Disbursement Date: 11/24/2006

Disbursement Amount: $8,577

Loan Status: DEFAULTED, UNRESOLVED

Effective Date: 03/03/2014
Outstanding Principal Balance: $6,840

Outstanding Interest Balance: $869
Type of Loan: FFEL CONSOLIDATED

 

On my credit report I have all 3 bureaus reporting this:

 

AMER. STUDENT ASSISTANT CORP.

Account Type: Installment

Account Number: DEUTSCHE -103XXXX

Payment Responsibility: Individual

Date Opened:         

Balance Date: 02/2016       

Balance Amount: $9,141       

Monthly Payment: $0       

High/Limit:  $6,840       

Account Status: Collection       

Past Due Amount: $9,141      

Comments: COLLECTION ACCOUNT STUDENT LOAN  

 

 

SALLIE MAE

Account Type: Installment

Account Number: 9769634054100062XXXX

Payment Responsibility: Individual

Date Opened: 11/2006

Balance Date: 03/2014

Balance Amount: $0

High/Limit: $8,576

Account Status: Late Over 120 Days

Past Due Amount: $0

Comments: LAST REPORTED DELINQUENCIES: 02/2014=I5,01/2014=I5,12/2013=I5 STUDENT LOAN ASSIGNED TO GOVERNMENT ACCOUNT TRANSFERRED OR SOLD

 

I also have a private loan that is from Navient:

 

NAVIENT SOLUTIONS

Account Type: Installment

Account Number: 502935046705XXXX

Payment Responsibility: Joint Contractual Liability

Date Opened: 09/2005

Balance Date: 02/2016

Balance Amount: $10,350

Monthly Payment: $117

High/Limit: $9,964

Account Status: Collection Late Over 120 Days

Past Due Amount: $2,118

Comments: LAST REPORTED DELINQUENCIES: 03/2015=I5,02/2015=I5,01/2015=I5 CHARGED OFF ACCOUNT STUDENT LOAN

 

Message 4 of 6
Established Member

Re: Navient/American Student Assistance Charge-off, what do I do from here?

Just an update.

I canceled my application process to consolidate on studentloans.gov to try and rehab my FFEL consolidated loan with FH Cann/American Student Assistance. If I rehab this loan will they be able to remove the lates on the Sallie Mae trade line also?

For my private loan with Navient, they offered a settlement of 50%. I am holding out for a lower settlement and for them to agree in writing that they will remove the lates or the trade line completely.

 

Thanks.

Message 5 of 6
Valued Contributor

Re: Navient/American Student Assistance Charge-off, what do I do from here?

When you complete your rehab, any remarks and account status relating to the default is required to be removed from the rehab'd tradelines.  Unfortunately, this does not include the actual late payment marks that led up to the default.  Some lenders will remove these remarks (or the old tradeline entirely), and if they don't, the lates will age off and disappear completely at 7 to 7.5 years.

Message 6 of 6
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