Update #9- Sallie Mae. Loans charged off.
Posted by RepulsiveSea2174@reddit | studentloandefaulters | View on Reddit | 42 comments
I received a notification that my credit has changed. Went to see what was going on and my three sallie mae loans that amounted to around $85,000 has closed and were charged off after 150 days delinquent. My credit score increased by 100 points. It’s been a couple days since I have received any phone calls from them usually it’s every day since my last payment in April. Now we wait…
Anyone who has their loan closed/charged off by Sallie Mae feel free to post collection companies who to be on the look out for. Or any advice. I’m documenting my default story in real time 2025 as it unfolds to help others in my predicament to help ease any fear/anxiety.
Budget_Eagle_5833@reddit
In 2019 I took out about $84,000 in privacy loans with Sallie Mae. As of today, October 30, 2025 that balance is over $140,000. I refuse to allow myself to fall into the trap of making those minimum payments and the balance never decreasing so I never made a payment currently they are calling to threaten that I am running out of time to work with them. I am around 120 day mark so my account should be charged off soon once my account is charged off I will then dispute it off my credit and walk away. I will provide updates because I know that there are millions of us that are in similar predicaments. Not all of us may be willing to do certain extremes, but for the ones that are, you can use my experience as guidance in the state that I reside the statute of limitations is three years. More than likely since I do not have assets, the debt will be sold. I will provide updates as they come.
Crinklytoes@reddit
MelvinMolt@reddit
Anyone try bankruptcy? That's how I got mine discharged last December. It was relatively easy apart from the DOJ taking forever to sign the Stip.
I'm not destitute either. Own a home. Mortgage. 2 car payments. Married. Both employed. 2 kids.
RepulsiveSea2174@reddit (OP)
What was your loan balance?
MelvinMolt@reddit
80k. Paid the fuckers for decades too.
RepulsiveSea2174@reddit (OP)
Will have to look into it!
Aggravating_Storm493@reddit
If you want any guidance on student loan bankruptcy, feel free to DM me. This is at least one area I do know something. I say DM so I can speak freely since it’s easier if I use some of my personal info to talk about it instead of more vaguely via public comments!
throwawaySTVUUHT224@reddit
Hey can I dm you too about this?
Aggravating_Storm493@reddit
Sure!
RepulsiveSea2174@reddit (OP)
Thank you so much!
MelvinMolt@reddit
Find a lawyer who has been successful with it. It's new law, and many lawyers have no fucking clue when they tell you it's impossible.
idkwhyimhere4444@reddit
i am in the process now!
MelvinMolt@reddit
Great. Good luck.
idkwhyimhere4444@reddit
thank you! we are currently at a standstill because of the gov shutdown lol
TitusXd40@reddit
My loans were originally from Sallie Mae but then eventually moved over to Navient. They were terrible to deal with.
Anyway, after mine charged off they waited a while and started calling my references and calling my work. The calls stopped again and then they sold my stuff off to collections. They called off and on for at least 6 months and then stopped.
Eventually, I got a letter in the mail still trying to collect. At the bottom, there was a disclaimer saying that based on the age of the debt, they could no longer attempt to sue for the balance of the loans.
magicandfire@reddit
Lord, I see what you do for others…
RepulsiveSea2174@reddit (OP)
I know right! Let’s keep the faith, lay low, continue no contact and hope for the best.
TitusXd40@reddit
It's worth noting that when my loans charged off and went to collections, I had nothing. No car payment, no mortgage. I only had 1 credit card, a shitty job, and a ton of federal student loans. This likely influenced their decision to not sure because they wouldn't have gotten much anyway.
RepulsiveSea2174@reddit (OP)
Me neither. My car is in my parent’s name, I don’t have a mortgage, or apartment. I live with my parents. I have no credit cards. So there is nothing they can get from me..
TitusXd40@reddit
As bad as it sounds, it's all probably for the better. The only thing I would recommend is getting a credit card. That way you can build up your credit after you take all the hits you get. That's the only reason mine is around 700. It was in the 5's when I went down this path.
RepulsiveSea2174@reddit (OP)
My credit went down to the 600s. After being closed and charged off it increased to 712.
TitusXd40@reddit
Fair enough! It may dip again, so be prepared for that, but otherwise it looks like you're on the right track.
RepulsiveSea2174@reddit (OP)
Yes I’m prepared unfortunately but I know that’s a part of the process. Going to continue to hope for the best.
RepulsiveSea2174@reddit (OP)
Thank you for your input!
TitusXd40@reddit
You're welcome, good luck!
WindSong001@reddit
Yeah, your pay will be garnished at some point and they can take your tax refunds
RepulsiveSea2174@reddit (OP)
I am in Texas and Texas does not allow private student loan lenders to garnish wages or seize tax refunds. Only if the “courts” say so. Therefore, they would have to go through hoops to sue and obtain an order if the courts allow it. They cannot just randomly do it.
WindSong001@reddit
Same here. It takes time but that is what I’ve seen happen.
RepulsiveSea2174@reddit (OP)
We shall wait and see either way is a win/win. Settle or sol passed. I’m willing to take a gamble.
shuttheduckup123@reddit
I defaulted 6/30/25 and still with Sallie Mae. I get calls every so often and letters from them. My SOL in Pa is 4 years. I have no assets and nothing in my name .. SAHM. Everything is in my husbands name.
RepulsiveSea2174@reddit (OP)
I’m in Texas and my sol is 4 years as well. I as well have no assets and nothing in my name. So we shall see what happens!
Perfect_Feeling5215@reddit
I have a Sallie Mae loan from 2008. I was paying on time until November of 2018. I could no longer afford to pay so I stopped paying my student loans. They sold my loan to Navient and Navient discharged the loan and sold it to a debt collector company, Asset Recovery Solutions. Has anyone heard of them? Anyway, I received a letter from them in the mail saying they are giving me until September 24 to respond to them or else they will assume the debt is valid and belongs to me. I never responded. I have received several phone calls from them. I want to know what state are they basing the statute of limitations on? I live in GA now but at the time I went to school in Iowa. I put my parent’s residence on the application(MN). I believe it’s past the statute limitations now but I need to know what state is the SOL based on. I was told I would have to look at the promissory note I signed to find out. Can anyone please confirm what state Sallie Mae uses for SOL? Thanks in advance..
reddit_is_addicting_@reddit
Seems like a good thing for you to do your OWN research on
RepulsiveSea2174@reddit (OP)
Do not be ugly on my post. If you cannot provide the information for this person then keep scrolling!! Minding your OWN business when this person didn’t ask you is FREE!!
reddit_is_addicting_@reddit
I did provide information. I told them the resources are free and to not trust a stranger on the internet with financial or legal advice
Now mind your OWN business as this conversation doesn’t involve you!
RepulsiveSea2174@reddit (OP)
Sure! Your sol is governed by the law of the state you were in when you took out the student loan. So in your case it would be Minnesota with a sol of 6 years. Also, download your promissory note as well if possible.
VaderVihs@reddit
They will give you a moment to peace but it’s not over. Had my loans sold to another debtor after being charged off and then a year later they’re pushing for a court case.
RepulsiveSea2174@reddit (OP)
Yeah I figured it is not over. Did you have Sallie Mae loans?
VaderVihs@reddit
I did unfortunately. Unless someone has family helping them pay it down I’d never recommend loans to anyone after my experience
RepulsiveSea2174@reddit (OP)
I wouldn’t recommend them either! How much were your loans? Did you have co-signers? Assets?
Smooth-E6721@reddit
That's strange. One would think that a charge off would remain on your credit report until it's sold.
RepulsiveSea2174@reddit (OP)
Well it says condition: closed Payment status: charged off And my credit score increased by 100 points. I officially defaulted on 9/30/25