Private loans heading into pre-litigation
Posted by RockyShea1986@reddit | studentloandefaulters | View on Reddit | 23 comments
Hi guys, I've posted her on and off in the past, and over the past few months I stopped paying my private loans because I was basically throwing my money away with the high interest rates. My loans were originally Sallie Mae, then they were sold to Navient, now there Mohela. They informed me that at the end of the month my loans will be going to pre litigation. Just wanted to see if anyone could help with what to expect next, if i don't take the bullshit monthly payment plan they're offering. Thanks in advance.
davebone6195@reddit
I am in a similar position. I stopped paying on my Sallie Mae/Navient/Mohela loans May 2024. They went into default December 2024. I received a letter this week offering settlement at 53% and a second letter stating pre-litigation.
I plan on not doing anything but contacting a lawyer. But if anyone has any suggestions, I am all ears.
HandsRatedE4Everyone@reddit
Keep holding out. Scare tactic indeed. I have about over 3 or 4 of those litigation letters and they sent a letter talking about settling. Now if someone owed you thousands of dollars, would you hurry up and try to settle or just take them to court and get all your money? A lot of people that have these Sallie Mae/ Navient / Mohela loans probably went to a school that's on the naughty list with the department of education. More than likely, your federal loans from those schools have probably been discharged and forgiven and you received a letter stating such and the reason. You're just being bullied into paying because you're scared of being sued which is what they want you to believe. If they thought they had an upper hand , they would have already sent you papers instead of dragging things out. They don't have the documents to prove anything. Start searching court cases online and see how attorneys dismantled the documents Navient brought to court.
SavagePlatypus76@reddit
That's only seven months. Thought it was 270 days🤔
Undercover_1234@reddit
How much do you owe?
dannydelco@reddit
Be on the lookout for some sweet settlement offers right before charge-off. Beg borrow and steal to take them up on it. If not, They likely will sue or sell to a debt buyer who will. That’s not the end of the world, but may depend if you are in a consumer friendly state for these type of lawsuits. It definitely varies across the country.
RockyShea1986@reddit (OP)
Would this happen during pre litigation?
Muted-Persimmon9317@reddit
Yep my mom had a plus loan for me that defaulted about 30k and they took 10k. Probably could have got it down more but my mom just paid it and I paid her back over a few years.Â
RevolutionaryEbb2522@reddit
Hey messaged you again ?
TheToken_1@reddit
It’s a scare tactic. If you are not served, then they haven’t done crap.
SavagePlatypus76@reddit
ExactlyÂ
RevolutionaryEbb2522@reddit
How many months has it been
RockyShea1986@reddit (OP)
6 months
wicket2003@reddit
Is it actually going into litigation or is this a scare tactic? Six months seems quick to then quickly go to the courts
SavagePlatypus76@reddit
ExactlyÂ
RockyShea1986@reddit (OP)
I'm not sure. They did use the term pre litigation and say it could be sold off, or go to collections and that there would be no payment plans offered after that.
Agile-Employ8777@reddit
Pre-litigation means someone will look at your income and assets to see if you are worth it to go to litigation. If not, they will move it to collections.
RevolutionaryEbb2522@reddit
Could you get them to settle prior to that
Agile-Employ8777@reddit
You can try. Navient brought up settlement to me before default. Navient Solutions tried to settle as well and close out my account. You could also settle on an individual loan if you have several with them. Knock them out one by one. I haven’t pursued settlement yet. From what I have seen reading other people experiences the longer in default the better the deal. There is some risk involved with waiting as they may choose to pursue litigation if they discover new income (they watch credit reports) or assets.
RevolutionaryEbb2522@reddit
I heard that if they offer a settlement prior to default it's usually not the lowest amount
Kdomlsx@reddit
Never confirm yourself on the phone again. For real. Some random number calls. How can I help you.
RevolutionaryEbb2522@reddit
Wait are you defaulted yet ? They can sue without it being in default
RockyShea1986@reddit (OP)
No, they said at the end of the month, they will go into default.
RevolutionaryEbb2522@reddit
I'm kinda in the same issue as you but I plan on defaulting and settling this year.