Planning to default on Sallie Mae private loan

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justbeaunicorn@reddit

Yes back in 2017/2018. I specifically had tuition answer through Sallie Mae. They sent many letters. Threatened litigation. Called my job. Eventually they offered to settle the debt for half. I still did not respond. It was very stressful. But I’m glad I did it. Last year the loans were removed from my credit report and my score increased to over 60 points. No more calls, no more letter.

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Easy-Passenger-7864@reddit

I also made it through the gauntlet. Congrats to you!

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nfjfnfkdndnd@reddit

How often were you contacted by any attorneys? I’m so curious. Good for you though!!

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Easy-Passenger-7864@reddit

When a new collection company or law firm contacted me I would let them send about 3-4 letters (about 3-4 months) before I sent my letter asking for validation of debt via promissory note and all other legally binding documents. At that point, they responded with “ thank you for your time, your account has been returned to Navient. Please contact them going forward.” It would then take about 2-3 months before another law firm or company sent me a letter and I would repeat the process.

I would never talk them over the phone.

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justbeaunicorn@reddit

Thank you! Cheers to you too.

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a-ndru@reddit (OP)

You never got sued?

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Misslieness@reddit

If southwood financial trust ends up involved after you default, they will definitely sue. But other companies tend not to be do aggressive. Currently being sued by them for less than your principal.

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nfjfnfkdndnd@reddit

How long did it take them to sue you after defaulting? I’m dealing with them currently

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Misslieness@reddit

just over a year. currently trying to reach a settlement before the court does

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miranlopez11@reddit

Did you reach a settlement?

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justbeaunicorn@reddit

My only regret is not doing it sooner. I was listening and reading online how bad it is to default. I came across a blog of a guy who strategically defaulted. I remember his blog being very detailed on his journey. He was offered many settlements which encouraged me to default. I was initially hoping to settle. The collection agency offered more half to settle. But my SOL was only 3 years and I realized that I just don’t have the money. I have federal loans.

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a-ndru@reddit (OP)

I’m going to to try and look for that blog. Thank you!

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pennnygal@reddit

Please let me know when you find that blog I am miserable paying my monthly for them I can barely afford to freaking eat at this point.

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a-ndru@reddit (OP)

I did look for it but wasn’t able to find it. I will be defaulting on it by the end of the year.

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justbeaunicorn@reddit

No I did not. It was somewhere in the 80s.

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Burningfields74@reddit

This is exactly what I’m planning to do. I borrowed $9K. I’ve paid $13K. I STILL owe $14K. I’m at the end of my rope w/ this company.

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a-ndru@reddit (OP)

I wouldnt default for 14k, try to refinance that.

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Burningfields74@reddit

👍

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CharacterFuzzy3398@reddit

Defaulting on a loan like Sallie Mae can have serious consequences, including damage to your credit score and collection efforts, so it's good to think it through. If you're considering it, it might be worth talking to a financial advisor or at least exploring options like income-driven repayment plans or loan consolidation first. Btw, I found this Comparison Chart of Student Loans Companies helpful.

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LemonVisualx_0@reddit

honestly, i've been in default for about a year now and while it's scary at first, it gets easier. the constant calls and threats eventually become background noise, and you start to realize they have limited options to actually collect. just make sure you're mentally prepared for the stress and have someone to talk to about it when it gets overwhelming. also, i found this comparison chart of student loans companies pretty helpful when weighing my options.

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nfjfnfkdndnd@reddit

I had over 100K with Sallie Mae. For high balances they usually don’t keep them with their internal debt collections once defaulted. They will most likely sell them to a debt collector. They sold my loans to Southwood Financial who is represented by one of the most aggressive debt collection law firms in the east coast Weltman, Weinberg, and Reis. I started getting letters this spring. I defaulted in January. SOL in my state is 4 years.

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dannydelco@reddit

They will sue. Which is Not the end of the world. Have handled quite a few in PA.

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Putrid_Factor_2660@reddit

My Sallie Mae loans were sold to Southwood, too, and with WWR as their collector. I owe about 26,000 dollars. I have no income, no house, or a car. She has SSDI, and her home is exempt from having to pay taxes. I'm trying to apply for SSI. My mom's home is a 1970s trailer on 3.2 acres of land, which serves as a primary home in Mississippi. She has two cars that are over 25 to 35 years old.

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nfjfnfkdndnd@reddit

Can you elaborate please?

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dannydelco@reddit

Being sued is not the worst thing that can happen because often you will still wind up paying less - sometimes much less - than has you addressed it earlier. Much better to be sued by Southwood than by Sallie Mae. In some states these lawsuits can be defended and sometimes beaten by a good debt defense lawyer. Or settled for a pretty substantial discount.

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nfjfnfkdndnd@reddit

Thank you

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shuttheduckup123@reddit

I default end of this month in PA too

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dannydelco@reddit

Feel free to reach out if you are in PA. CreditLawyers.com.

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shuttheduckup123@reddit

Messaged you

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LemonVisualx_0@reddit

Defaulting on Sallie Mae might seem risky, but if you're thinking outside the box, consider trying to leverage the situation—like offering a settlement, or maybe even using creative legal strategies to delay collections or negotiate a better deal. Sometimes, if you get lucky or think unconventionally, you might find a loophole or a way to turn the system in your favor, especially if you stay persistent and resourceful. Remember, lots of folks have gone through this and come out the other side with some unexpected wins. I found this Comparison Chart of Student Loans Companies helpful.

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a-ndru@reddit (OP)

Word salad.

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DueGrapefruit5616@reddit

I’ve missed 6 months of payments to Firstmark services so far. My credit took a hit but everything is in my husbands name so I’m still waiting to see what’s going to happen next

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lf1216@reddit

I defaulted, got sued, ended up in mediation… I have to pay the full balance but no interest and they settled for a low monthly payment.

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Odd_Investigator_736@reddit

What is mediation?

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lf1216@reddit

When both parties agree to meet outside of court to try to come to an agreement

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Odd_Investigator_736@reddit

Oh, so in other words, you were served court papers, but this was settled before coming to the point of both sides talking to a judge about it, correct? Out of curiosity, are you happy with the result?

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lf1216@reddit

Yes, I was served and there was a trial date but since we settled in mediation we didn’t go to trial. I honestly thought I would at least get to pay a percentage of what I owed but they did not budge on the total amount owed. That was a little disappointing but, at very least I got a manageable monthly payment and no interest. I’ll just be paying it for like 20 years 🫠

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oandlomom@reddit

I’ve already been paying for 20 years and I owe only $5,000 less that what I took out 😥

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Odd_Investigator_736@reddit

Damn, I'm sorry. I mean, I guess it's better than wage garnishment, like way better, but still essentially something you gotta live with. The last thing I received from them in the mail was an intent to litigate letter around the time of Easter. Whether that's a scare tactic/bluff, I don't know, but they succeeded in the scare part. I haven't contacted them or anything, God forbid I reset my SOL and give them all the more opportunity to sue, but I'm definitely sitting on the edge of my seat dreading what could go wrong.

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CVXLOVE@reddit

What about when u want to get a mortgage? I am dealing with trying to. I was paying the minimum amount on my student loans until Covid. Payments weren’t required and never initiated again. I just applied for a home mortgage and found out that 2 weeks ago it was sent to collections. I didn’t get any notice . Now I am not sure I will be pre qualified for a home I want. Any advice very much appreciated.

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oandlomom@reddit

Only federal loan payments were paused during Covid, not private.

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CVXLOVE@reddit

Is there a place anyone can direct me to to try and navigate getting a home loan with my student loans just sent to collections?

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Safe-Education-8175@reddit

Why? Have you considered other options? DM sent.

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mizmaclean@reddit

No one asked for your dms. This isn’t cool.

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TechnicianIcy1644@reddit

Just dont pay and then change your cell phone for 7 years./s they can only force you to pay federal loans.

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a-ndru@reddit (OP)

Well, I just put my apartment up for sale and I’m moving overseas and my family is going with me, so they’ll have a hard time contacting me.

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Odd_Investigator_736@reddit

I'm currently in the process. Utilize a free consultation with a lawyer who handles this stuff if you can. Might get some invaluable legal advice and strategies for this that we redditers fall short on knowing. Don't ever again talk to Sallie Mae/Navient/Mohela/whatever the hell they're calling themselves these days because you'll otherwise probably reset your SOL. It's possible they may eventually offer you a good settlement deal (after many crappy ones to begin with), so if there's a settlement you can afford, that would be better than running out the SOL because the debt doesn't actually go away with that route (you just can't be sued, but you might also never be able to buy a home either or the like).

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Training-Tree8467@reddit

About to officially default end of this month, be prepared for a lot of calls before you default and a MASSIVE hit to your credit score. Mine dropped from a 735 to a 495. Family members who I’ve never lived with called and even my ex bf who I lived with. But I will say- I spoke to a family friend who was a debt collector and attempted to negotiate a lower monthly payment with them and they would not budge. So I had no other real options.

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nfjfnfkdndnd@reddit

My credit score only dropped 100 points surprisingly it was 700 and is now around 600 and has been increasing a tiny amount since. I have no idea why. I do pay all of my other bills on time but I really expected it to hit the 400s

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porygon766@reddit

Im planning on doing the same or leaving the country

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a-ndru@reddit (OP)

This is exactly what’s I’m doing lol

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eyesoflazarus@reddit

I will probably have to at this point. I’ll be back on this thread to see what ppl have to say. Good luck <3

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StudentLoanShutdown@reddit

Yes, many already have. Check out r/studentloanshutdown