I’m writing on behalf of my partner. She currently lives in the UK with me (and is a citizen here). She has no American income and therefore pays no tax (though her tax records are fully completed and up to date each year, so no issues there). She has no assets and no desire to return to America. Until now she has been paying the minimum amount per month on her private loans (around $1,200 per month), but that amount – and the astronomical amount that would have been repaid by the end of the 372 month period – is no longer manageable.
She has spoken to the lendor, Sallie Mae/Navient, to ask if there is a settlement agreement that could be reached, paid in monthly instalments, but has been told no. However, we know that there *is* such an instalment if you’re already in default. My partner has basically told Navient that the choices, as she sees them, are: 1) we reach a settlement agreement, or 2) she simply stops paying them any money.
Their only response was, ‘Your account is current, so we won’t offer you any such deal.’
We’d like to know what the likely implications of defaulting on the private loan debt will Sallie Mae/Navient would be, given that my partner has no American income/assets and isn’t affected by her US credit score. Would there be issues visiting the US on holidays or renewing a US passport? Do you know if Sallie Mae/Navient would be more receptive to a settlement paid in monthly instalments if my partner was already in default?
I would suggest you read How Do I Get Navient to Settle My Federal Student Loan for Less? and This is How You Can Settle Your Navient Student Loan.
As a bonus, take a look at Top 10 Reasons You Should Stop Paying Your Unaffordable Private Student Loan.