“Dear Steve,
Have consolidated Federal Student Loans in 1999. Was locked in at 7.5% interest rate. One of these loans is a Federal Subsidized and other is Federal Unsubsidized.
I have been current on my loans and my balance is over 80,000. I would like to know how I can get them to take a discounted payment in order to pay off my balance in full. They told me that since these are Federal Loans there is not discounted payoff available.
My loans are in process of being transferred to Sallie Mae. Can you tell me how I can offer an amount that is less than the full balance due that they may settle on?
Roxanne”
Dear Roxanne,
It is unlikely they will entertain any settlement offer. There is no reason for them to settle for less since they have the full power of the law behind them if you don’t repay your contractual amount due.
If you fall delinquent they can add a big balance as a collection fee, intercept your tax refunds, report you delinquent on your credit report, and garnish your wages.
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Hi Steve,
If I have PRIVATE student loans with Sallie Mae, are they likely to settle?
Hello
Steve,
I work
as a counselor for a nonprofit credit counseling agency. I read your advice to
this client and agree that settlements and bankruptcy are not going to be of
help in this situation and that it is always a good idea to read and understand
the fine print before you take out any sort of loan. The company I work for has
some useful information on this topic on its website. it may give the op some
helpful information on what options they do have to better manage the debt.
Here is a link to some information the op may find useful:
http://www.clearpointcreditcounselingsolutions.org/tips-and-tools/articles-and-tips/college-education/student-loans-after-college?__utma=107011217.418078895.1320678967.1320678967.1327243961.2&__utmb=107011217.3.10.1327243961&__utmc=107011217&__utmx=-&__utmz=107011217.1320678967.1.1.utmcsr%3D%28direct%29%7Cutmccn%3D%28direct%29%7Cutmcmd%3D%28none%29&__utmv=-&__utmk=44374436
You know there is something fishy going on when the government goes after the credit card companies for the way they do business, but when it comes to student loans, the government is much worse than the credit card companies could ever think of… The only thing I can give the credit card companies at least they sometimes try to work with you to pay off the debt, unlike our lovely government.
I’ve said for a long time that student loan debt is not the lilly white debt people assume it to be.
I guess the bottom line is to better understand the terms of the debt you are getting in to. Student loan debt has not been dischargeable in bankruptcy since around 1995.
Sallie Mae if your delinquent will accept 60% of the balance over a 24 month term. I settled with them in July under those terms.
Good to know. Thanks.