Considering defaulting on Private Student Loans with Firstmark. Please help
Posted by Indy_0816@reddit | studentloandefaulters | View on Reddit | 23 comments
So I have about 60,000 in student loans with Firstmark. I have been religiously making payments since 2018 and the principal amount hasn't budged at all because I could only afford the minimum payment of $450. I recently just had a baby, my partner is in the military and we just moved to a new duty station. So I don't have a job and I really can't bring myself to get a job while my baby is still so young and dependent on me. I don't have any assets, no income, nothing to my name; so I'm at a dead end here. I'm considering defaulting because I'm not about to get a dead end job just to put my child in daycare and use whatever money left over to pay my student loans. I rather have a bad credit score and be there for my child more than anything. I know it sounds reckless but honestly I'm so sick of making payments and never seeing the amount go down, so much money has already gone down the drain. What happens if I default with Firstmark, does anyone have any experience with them? Any advice is appreciated, Thank you!
green_hobblin@reddit
Call their recovery department and talk to them: 8007202443
They're really nice and can tell you about how charging off loans works. I just did that last year. I had borrowed a total of 60k in college. After ten years of payments, I owed 80k. I literally couldn't do it anymore (especially with federal loan payments). I am currently making miniscule payments on my 2 smaller loans and huge payments on my bigger loan, which was settled for half the amount owed. 2 did go to third-party debt collectors, but it worked out for the best (I called later than I should have to start payments, so they left the recovery dept). Honestly, after talking to someone when I paid last week, I might let the 3rd get to a debt collector so I can do a better settlement and payment plan (recovery only does lump sum settlements and the best they can settle is 80%).
Aggravating_Storm493@reddit
Hi there, first off thanks for sharing what you’ve already shared. I’m currently dealing with a Firstmark default, that just happened end of Sept.
I was wondering - how long did it take your loans to be taken out of house to the third party debt collector?
So far, I’m trying to figure out about talking to them directly and doing what a lot of the people on the sub recommend of going dark.
I am willing to pay a settlement to them but 80 percent of my loan total is just way too high for me if that’s what they give me as my only option like they have to you. I’m just so panicked and don’t know if it’s better for a settlement to wait a while before trying to negotiate or if I should contact them soon. So far, since the default, I’ve gotten two calls (I didn’t pick up either) and they are from their post default department since I called the number before. It’s from that call I did pre default that made it clear my only option was default, as the person on the line said flat out that they have no options for me until I default.
Anyway, no worries if you can’t or don’t want to respond! I’m just messaging in case someone who’s dealt with Firstmark has any information so I can figure out what I should do.
Thanks all the same!
green_hobblin@reddit
So, 2 of my 3 loans moved to debt collectors pretty quickly and got paid off (payment plans are available with them, and they settled lower than Citizens). I'm still waiting on my other loan to go to a debt collector (it's been 8 months since I paid, but only a couple since I last called).
Aggravating_Storm493@reddit
First off thank you SO much for responding. I sincerely appreciate it, I’m literally just quivering in panic so thank you so much.
In your opinion, was it better or worse for settlement options once those 2 loans moved to debt collectors? Like, how was the negotiation with them / how much lower did they make your loans when they ended up with the third party?
My loan is for about $47,000 and I’m hoping to negotiate for 25 percent max for a settlement. And 25 percent is pushing it because my worsening health makes it hard to save money, so that’s kind of all I have for a settlement as of now. And so if talking to Firstmark directly would only get me to 50-80 percent which are some numbers I’ve seen floating around, I just wouldn’t be able to pay it period. So I’m just figuring out if I’d get a better deal from a debt collector.
Anyway, thank you so much for even responding. I really mean it when I say I appreciate the help so much.
green_hobblin@reddit
No problem! We have to help each other out! It's rough out there.
Unfortunately, you don't have much say in the matter. It stays in the recovery dept or goes to a debt collector, but you can't choose. Sorry if I'm just reiterated something you already know, but I wanted to make sure I was being clear. The debt collector was easier, I could settle for 50%, but I also didn't have to pay it all at once. I paid $2200 for 12 paychecks (every other paycheck, which was essentially once a month). I'm lucky. My husband wasn't burdened with student debt, so he was able to take on more expenses while I paid that off, but I know that isn't the case for many people. I don't have all the answers, unfortunately, and I know that this is stressful, but it is going to be ok. There's a light at the end of the tunnel. Even if you can't settle the debt on a payment plan, you've stopped the interest from accruing. You make the payments you can and do your best. If you really can't pay, and the worst happens and you go to court, they'll see it's unreasonable for you in your situation. Of course, I would try to avoid court if you can, but you can't get blood from a stone either.
You're going to be ok ❤️
YOLO1633@reddit
Did you let the third one default too?
green_hobblin@reddit
They all are in the recovery department (defaulted) but only one is still managed in house and not by a debt collector.
swobokiss@reddit
They basically just told me too bad so sad and that I'm going to be delinquent bc i'm out of options and that I signed the contract.
Alternative_Bit_68@reddit
I did. No choice. My last payment to FirstmaMark was in q3 2020. I have not heard anything from them and am laying low. Account shows closed /collections. SOL in my state is 6 years. Fingers crossed.
Aggravating_Storm493@reddit
Hi there. Sorry to be messaging your comment from so many months ago. So no worries if you can’t or don’t want to respond. I’m dealing with Firstmark right now. Officially defaulted end of Sept 2025. When you say you haven’t heard from them, do you mean truly nothing?
So far, I’ve gotten two calls (one last week, one this week) so far from Firstmark, and a generic looking “privacy policy” physical letter. I haven’t responded to any of this stuff.
I’m hoping to be able to do a decent settlement offer since I don’t think I can make it through SOL because of my severe mental health issues already taking a toll on me post default. So I’m just gathering information from others who have gone through Firstmark to figure out my best course of action / try to calm down my panic. I hope they continue to keep low on how much they try to contact me but I have a feeling that will change soon.
Anyway, no worries if you can’t or don’t want to respond! Just wanted to reach out all the same. Thank you for sharing what you’ve already shared.
Indy_0816@reddit (OP)
How much did you owe them?
Alternative_Bit_68@reddit
$90k
Exact-Part-6645@reddit
I don't have experience with Firstmark but I just defaulted with Navient for the exact same reasons. My advice is just do it. I put it off for like a decade and I essentially lost that decade of my life because you are a slave to these lenders when you are making payments and watching your balance increase. You have to get out of this mess and default and settlement are the only way for many of us.
Basically, what you're looking at is not making payments for six months. They will harass you during that time but after six months you will default and that's when you can start negotiating a settlement.
Do you have a cosigner? If you do, then you have to talk about that decision with them first. If you don't then that is better for getting a settlement offer.
As far as the settlement, it varies for a lot of people based on many factors but I've even seen people settle at 22% of the balance for a lump sum.
Good luck
Accomplished_Emu863@reddit
Hello, when you mentioned negotiating, are you meaning with a lawyer or can you yourself negotiate the price down? I’m in the same boat as OP.
Indy_0816@reddit (OP)
I don't have a cosigner on the loans, thankfully!
Exact-Part-6645@reddit
Then you should get a better deal.
I just went through that process and it's stressful but look at it like this, you're taking the first step to a better life.
Imjusthereforthetee@reddit
Did they ever end up calling your job? That’s when I started freaking out and called them to do a payment plan. I was seriously worried they were going to call my job. They started sending emails to my work email which I have no idea how they got. But I didn’t want that.
Longjumping-Syrup278@reddit
This is terrifying!
Apprehensive-Ad-80@reddit
Your partner being in the service makes it a bit more complicated than other non-service partners/families. Keep in mind your credit and/or future legal cases can reflect poorly on him when it comes to clearances and promoting. You said partner not spouse, so I’m assuming you’re not married which could make it a little less impactful, but with a child involved their command still won’t like it.
Indy_0816@reddit (OP)
How does my debt affect him if I got the loan before we ever got married? This isn't something I considered, so thanks for bringing it to my attention!
Apprehensive-Ad-80@reddit
The military is a weird place, and the actions of dependents reflect on the service member. My wife got in an accident when she was in college and the settlement was mediation, it was brought up in my FIL's promotion packet... she was 20, in college 900 mi away, her folks had been divorced for 3 years and had been living in different states for 5-6 yrs by then.
In general, it can be a possible security or lability risk if loved ones/dependents to have lots of outstanding debt, poor credit, pending legal or court cases, or other looming issues. It opens the door for a foreign actor to use that as leverage to gain information.. "hey Mr. Air Force guy, I can make you're wife's debt go away and solve all of your money problems if you take a couple pictures of the inside of that plane for me"
TWOscore11@reddit
I would say just stop paying and don't bother speaking to them. Your credit is already bad and you have no assets, not a lot of income...so nothing to lose. Depending on your state, and if they bother suing you might get past the statute of limitations without even getting sued
jonsonmac@reddit
Here’s my story:
https://www.reddit.com/r/studentloandefaulters/comments/186a56l/comment/kbu3xet/