What’s next??

Posted by Hot-Time1122@reddit | studentloandefaulters | View on Reddit | 6 comments

I have private loans with Navient and Firstmark. I owe Navient about 12k. This includes three small loans for about 2k a piece and one loan for about 6k. My Firstmark loan is about 12k. I defaulted a little over a year ago on both. I defaulted because I saw no end in sight. I had faithfully paid for 8 years and had paid more than I borrowed, but owed more than I borrowed. I saw the Navient forgiveness and realized I would have qualified if I had defaulted sooner. I had an 800 credit score and could not go on the mortgage with my husband because of my debt to income ratio. So I decided to default. I have cut off all communication with both companies. I received letters from Weltman, Weinberg & Reis Co., LPA concerning my Navient loans. I responded with a letter requesting that they prove they were entitled to collect on the debt about a month ago and I have not heard anything. I am hoping to settle because the SOL in my state is 7 years, and I can not last that long. I’m hoping due to the small amounts owed compared to others they won’t actually sue. Does anyone have any advice on what to do next?

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Aggravating_Storm493@reddit

Hey there. Sorry for responding to your post so much time later. I’m dealing with Firstmark right now as I just had a loan default with them for about $47,000. I have a few questions, no pressure to answer. I’m just trying to get as much information to figure out what I should be doing since I’m just freaking out. I just couldn’t afford the monthly payment anymore.

When you negotiated with them for a settlement, did you negotiate with them on your own or with a lawyer?

How was the negotiating process? Did you negotiate with Firstmark yet? They’re who I’m trying to figure out, because I don’t have it in me mentally to wait to SOL to run out so settlement is my only real option. Ideally for something around what you got, 20-25 percent or less, as I don’t have that much more saved.

No worries if you can’t or don’t want to respond, thanks for the info you’ve already provided on your post!

Undercover_1234@reddit

How did this turn out

Hot-Time1122@reddit (OP)

I have settled my three smaller loans for about 23%. The larger one I hope to settle before the end of the year. I ignored their calls and letters until I had some money saved to offer a settlement.

How did this turn out?

IncidentFlaky7923@reddit

Lump sum payments will get you the best deal.

I agree that waiting out the SOL is not easy and you would rather be done with all of this sooner than later.

The bottom line is you need cash available to get a settlement that will be favorable to you.

I would offer 25% of the balances as a settlement and then bargain up to about 37%.

I highly doubt they would take you to court for those amounts.

Thanks for the advice.