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Paying off old Navient Private Student Loan account

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thundr101
Valued Member

Paying off old Navient Private Student Loan account

I have a Private Signature Student Loan that is no longer reporting to my CR, but I still see the Past Due amount owed in my Navient Portal as the full loan amount.

 

I was in contact with Weltman, Weinberg & Reis last year, and made an arrangement to settle for less than the full amount, and they agreed to delete any TL as part of the agreement. I ended up not being able to make the payment as arranged, canceled it and of course had since forgotten about it.

 

Just got another letter from Weltman, Weinberg & Reis, offering me a 'Settlement Offer' for a higher amount than before.

 

I am not disputing the debt - and repaying is not really the concern. My concern is with the reporting of any updated TL once the settlement is paid. Will this settlement amount cause the TL to report again, but as settled for less than full? I don't recall how/why the original TL got deleted.

 

Sorry for the winded question .. we are in the process of building a house, and will be closing on it within 4 months. If this TL reappears as settled, I imagine that will be a definite hit to my credit score.

 

Should I wait to pay, and hope I don't get sued within the next 4 months, and try to settle after the house closes, or settle it now?

 

ETA - I did make a minimum monthly loan amount payment back in 08/2019, but have not since.

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6 REPLIES 6
pizzadude
Credit Mentor

Re: Paying off old Navient Private Student Loan account

What is the SOL for this in your state?  Not that it would necessarily stop you from being sued but it would be helpful to know where you stand.

 

When did this drop from your reports and was it due to age ?

 

I'd lean towards waiting until after you've closed on your house to deal with this, seems like if they were going to sue you it would have already happened by now?

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 2 of 7
thundr101
Valued Member

Re: Paying off old Navient Private Student Loan account

Hi - Thanks for the reply.

 

The debt is from 2005.. it stopped showing on my report in 08/2018. After speaking with the CA and with Navient Office of Executive - I gathered that at some point in mid 2018, I had an interaction or asked for a settlement on this account, and it caused my DOLA to reset. At the time, I had a few Navient loans that were around the same $$ amount, and didn't do my homework before replying on this one.

 

I called my to-be lender and explained the situation, was told that with 4-5 months before we close, getting sued would worse than having a paid for less than full on my CR. I went ahead and paid the agreed amount, and the loan processor said they would wait to repull credit until 45 days from closing - which should give my score time to come back, maybe not where it is now, but over 720.

 

I'm guessing the CA's either subscribe or wait to see mortgage or certain types of activity, and will reach out.. hoping for payment...? Or, there is something with the fact that my last interaction with them happened 3 years ago.

 

I am just gonna hope for the best and for my score to recover.

 

Thanks again for responding, I appreciate the feedback.

My Starting Fico Scores:
[Fico Scores as of Mar 2024]:

My Fico Goal Score: 801


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Message 3 of 7
calyx
Super Contributor

Re: Paying off old Navient Private Student Loan account


@thundr101 wrote:

 

 

I'm guessing the CA's either subscribe or wait to see mortgage or certain types of activity, and will reach out.. hoping for payment...? Or, there is something with the fact that my last interaction with them happened 3 years ago.

 

 


^ As to this, CAs definitely keep an eye out on your credit.

When I was building/rebuilding my credit and my score started to rise, I started getting all kinds of collection requests for my ex and his current wife.   I still see CAs soft pulling my credit regularly. I wouldn't be surprised that certain activities start getting attention of CAs for anyone who has outstanding debt.

Happy practitioner of AZE7or8or9or10 | Team Finances > FICO
Message 4 of 7
pizzadude
Credit Mentor

Re: Paying off old Navient Private Student Loan account

Good luck with your closing, who knows maybe they won't end up reporting.

Either way I hope that the impact is minimal  Smiley Happy

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 5 of 7
thundr101
Valued Member

Re: Paying off old Navient Private Student Loan account

So true! Funny how reading something that you already should know, makes so much more sense when you hear it from someone else Smiley Happy

 

I hope it's not a huge issue... if anything, I hope my score recoups by Dec/Jan.

 

A friend said that during Mortgage app and thru closing, all things start to shake out.. so I'll take it as a blessing that it came now, and not right when the pulled my credit again.

 

Have a great weekend, thank you again!

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thundr101
Valued Member

Re: Paying off old Navient Private Student Loan account

Me, too. Smiley Happy

 

Appreciate the feedback, thanks again!!

My Starting Fico Scores:
[Fico Scores as of Mar 2024]:

My Fico Goal Score: 801


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