Default or Reconsolidate then Default on Sallie Mae loan? Living Abroad
Posted by foxxren@reddit | studentloandefaulters | View on Reddit | 6 comments
Hi everyone,
First of all this reddit has been incredibly helpful, it makes me actually have hope in my student loan mess.
Right now for context, I'm a US citizen living abroad, I don't plan on going back anytime in the future and already settled in my mind that I'll take the credit hit and have a write off in 7 years etc/ settle for a certain amount when the time comes. I'm defaulting on Citizens currently, and my federal loans will soon be $0 as it works under the IDR plan.
However, now I have to figure out what to do with my Sallie Mae loans which are due for repayment in December. I do plan on defaulting on them but would it be easier if I consolidated/refinanced through a different company then default? Does it even matter?
At the moment if I did choose to refinance, living abroad is making it more complicated since the logistics of not having an address or US number but also the fact that my credit is currently taking a hit anyway because I'm missing payments on my Citizens.
Does anyone have advice on what to do? Should I just wait it out with Sallie?
Thank you!
Fit_Falcon_930@reddit
The 7 years part …. So once student loans hit the 7 year mark we can do a settlement ?
foxxren@reddit (OP)
From the research I’ve done, loan servicers will start to contact you after you officially default and if you wait long enough, you can negotiate a payout amount which obviously varies from person to person. I’ve read the longer you wait the better your case can be the to settle.
As far as the 7 years, that’s just when the credit hit falls off your report so I’ve read people wait until that point to settle if they have the means to so they can build up their credit agajn.
AutomaticFeeling5324@reddit
Wait it out with Salliemae, since your credit is already not in good shape it doesn’t matter to consolidate. You will end up getting a bad interest rate anyways.
foxxren@reddit (OP)
Thank you! This is definitely the way I'll go then.
Pretty-Ambition-2145@reddit
Taking out a new loan knowing you are going to immediately default on it may be fraud. Not an attorney so don’t quote me but there’s a nonzero chance of that and should be considered.
Usukidoll@reddit
The loans would have to stay current for refinancing to work. Best to wait it out since your credit has been trashed anyway.