Phone call
Posted by brighteyesburn@reddit | studentloandefaulters | View on Reddit | 24 comments
I got a phone call within the last week from Navient. This is the first and only time a message has ever been left for me. It was as follows:
“Hi, this message is for (my name here). If you could listen to this in full, my name is (agent name here) reaching out to you because your account has been turned over to me for review this month of October. This is now an attempt to avoid the termination or ending of our relationship with you here in this office at Navient moving forward if you could please call and update me with your current situation so we can review all options while you still have them. We're here to help but we need to hear from you at 866-xxx-xxxx and we are available Monday through Friday 8 AM. To 9 PM Eastern time thank you…”
What are my next steps? A few weeks ago I received letters saying they wanted to settle at 70%. Mohela takes over later in the month. I do not work. I have a lump sum payment on hand of 10% or less that I can offer. I don’t know how I’d ever pay this monster off.
brighteyesburn@reddit (OP)
Update: received another call saying I have three more weeks before further action will be taken. It’s an in house Navient collections agent calling. Mohela takes over in about a week. I am so confused. Are Navient and Mohela the same?
marwestam22@reddit
I’m currently in the process of “strategically defaulting” (there’s a lot of info on Reddit on how to do this answering all the questions you have). I’ve also received the same voicemails from Navient. From what I’ve read, it’s no point in talking to them until you get notice you’re being sued. You’re just progressing through the collection process. They won’t take your 10% lump sum offer now, or maybe ever. In my opinion, I’d continue to ignore them until you get legal communication you’re being sued. And only at that point make your 10% offer. But hope that you don’t ever get sued and the SOL passes to help in the process.
Also, Navient loans are being transferred to Mohela sometime soon. They are 2 different companies. I’d wait it all out and see what happens with Mohela. I don’t think Navient will do anything serious in the meantime. On the other hand, you may have some small advantage offering your 10% considering the transfer and the end of year.
Usukidoll@reddit
Navient and Mohela are two different lenders but I know Navient and Sallie Mae are related.
brighteyesburn@reddit (OP)
What it said exactly: we’ve got three weeks before your file will be progressing. If you could please find a moment to call so we can review all options while you still have them again we’re here to help.
Usukidoll@reddit
It could be also due to Navient transferring all of their private student loans to Mohela (which in my opinion a federal student loan servicer shouldn't have any business with private student loans) just like Discover transferring all of their loans to Firstmark which is a division of Nelnet.
Usually lower percentage settlement amounts get offered very close to the statute of limitations (I think this starts when the first payment is missed).
brighteyesburn@reddit (OP)
Thanks! I wonder if I should call and try to settle for 10% or so before Mohela takes over. When you offer them a percentage, is it a percentage of the original loan or a percentage of the original loan plus the compounded interest? That’s the biggest issue with mine. I paid on it for 7 years and it’s more than DOUBLE of my original loan amount. 😞
Usukidoll@reddit
It's the percentage of the current amount which is the original loan + compounded interest
brighteyesburn@reddit (OP)
Thanks for clarifying! I still don’t know what I should do. 😝 does talking to them harm me in any way?
Usukidoll@reddit
If you acknowledge the debt it's gonna reset the Statute of Limitations
brighteyesburn@reddit (OP)
How do you ever talk to them about a settlement then?
They have now called my husband. No clue how they would have ever obtained his cellphone number. He hung up on them.
Usukidoll@reddit
Gotta be honest here. Even if you do offer a settlement, they're not obligated to accept.
brighteyesburn@reddit (OP)
Update: received another call saying I have three more weeks before further action will be taken. It’s an in house Navient collections agent calling. Mohela takes over in about a week. I am so confused. Are Navient and Mohela the same?
brighteyesburn@reddit (OP)
They have sent me offers to agree to a settlement, so they want to settle. Now the agreed upon percentage is what might be hard. 😝
Usukidoll@reddit
When did you default? If it was recent, the settlement percentage is gonna be high.
brighteyesburn@reddit (OP)
Payment came due again in March. I haven’t had any type of communication with them.
ProleDBA@reddit
If the 70 perceent is too much then try to make it to until the SOL runs out. Not only do you have to consider the settlement, but you have to consider the tax burden as well.
brighteyesburn@reddit (OP)
Other users have been posting about a tax law that does something to this. That’s the most technical I can get with it. I’m going to look up what it’s called and get back to you. The SOL is way far away. I’m not sure it’s even “started” yet?
ProleDBA@reddit
This is interesting. Usually it takes a while for them to offer a settlement. If they SOL is a long time off and they are willing to settle now - maybe they are trying to get rid of bad debt? I am not sure of the exact law, but I do remember people who settled saying that they had to pay taxes on the amount that was canceled and it could vary from 10% to 30%, I found this- https://www.nerdwallet.com/article/loans/student-loans/student-loan-forgiveness-tax-bomb
brighteyesburn@reddit (OP)
Non-taxable through 2025! https://www.reddit.com/r/studentloandefaulters/s/W11kC84aRD
brighteyesburn@reddit (OP)
More info I pulled from the interwebs:
“Based on the information provided, here are the key points regarding your private student loan debt settlement and potential tax implications: Normally, settled debt where you paid less than the full amount owed is considered taxable income. The lender would typically send you a 1099-C form reporting the cancelled debt amount.However, under the American Rescue Plan Act of 2021, most student loan debt forgiveness between 2021-2025 is exempt from federal taxation. This includes both federal and private student loans.Since your debt was settled recently and you haven’t received a 1099-C, it’s likely the forgiven amount will not be taxable under the current rules, assuming the settlement occurred after the Act was passed.Even if the original lender no longer exists, they or the company that acquired the debt should still send you the 1099-C if required. Contact your attorney to see if they have any information on the final lender and how to obtain documentation.”
ProleDBA@reddit
This is kind of sad. It should be nontaxable - period. Not just until 2025.
brighteyesburn@reddit (OP)
I agree. I am part of the first generation of borrowers who was conned into student loans. I felt like I was prepared and knowledgeable, but also trapped. We live in a sick sad world. Always profit over people. I hate it here. 😞
ProleDBA@reddit
I can relate. I was the first to go to college in my family. I wasn't prepared or knowledable at all. I really relied on my advisors and financial aid department for info. I agree with you that everything is always profits over people.
brighteyesburn@reddit (OP)
Update: I received more calls this week but no voicemails.