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The 50 Most Recent Comments

  • The servicer was wrong? I don’t even need to look for my shocked face for that. They are wrong a lot.

    Whatever you do, don’t enroll in the REPAYE program. There are ways around the income requirement and I would really advise you schedule an appointment with a knowledgeable student loan coach like http://damonday.com to guide you through the waters.

    It is interesting that the government describes these programs as being based on discretionary income, but they just are not. They payment is determined by the program and a formula that uses the poverty rate to calculate why is labeled as discretionary.

    Making a good faith payment i worthless and prevents nothing.

  • MO

    Hi. I have a private student loan through Navient that is in default (over 120 days late). And is negatively affecting my credit score (obviously). Recently, they’ve been lowering my score on a monthly basis and I would just like to settle and be done with it. The collection agency has offered me a settlement in the amount of roughly 1/2 the amount of the loan.

    My question is, will this settlement event negatively affect my score? It’s already been lowered from the default status, and it’s being lowered further by the month. I assume a settlement would stop the monthly reports, but will they attempt to further lower it with a final “settlement” blow?

    I know they recommend I get the settlement in writing. Can I have them include a clause that forbids Navient from further affecting my score?

    Thanks in advance!


    • A settlement can absolutely impact your score. The part forgiven will be reported as a bad debt and the payment history will continue to be reported for seven years. The real issue is what are you going to do to improve your credit moving forward.

      It’s not Navient that is impacting your score but the many different calculations that creditors and credit reporting companies use. There is no one formula. Navient is providing data on your payment history that those entities are using as part of calculating your score.

      Also, let’s not forget, if you are not insolvent, you will have to pay income tax on the forgiven debt.

      I would suggest you read https://getoutofdebt.org/51523/debt-settlement-is-credit-card-debt-relief-really-possible-if-you-settle-pros-and-cons

  • CrazyBill

    Meracord sold the servicing rights and the platform to Evergreen.