How quickly does sallie mae (or whoever they sell the debt to) sue after default.

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Darkavenger_94@reddit

Being sued by Sallie Mae for a 12k loan/15k now with interest “allegedly”. Status of limitations in Wisconsin is 6 years and was sued in 2 lol. Just sent my Answers to the court so that they can’t win an automatic judgment against me and garnish wages. Definitely will look to negotiate but wanting ~ $600/month won’t cut it.

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ConsoleModded@reddit

Any update on this? Sometimes I’ve heard that if you respond to the court, the case will be dropped because Sallie Mae was just looking to get an easy judgement but doesn’t want to actually put in the effort for the lawsuit. Don’t know if it’s true though. What has happened in your case so far?

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Darkavenger_94@reddit

Nah, the courts sent a letter for me and the law office to appear virtually. From what I gathered, this is normal protocol. Most time they don’t want to follow through and hope that we can solve before court because it’s needlessly expensive. St the moment I’m looking to try and settle for ~200/month.

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brokeboii94@reddit (OP)

They may try motion for summary judgement

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RecordingMountain585@reddit

Sometimes they only threaten to sue, but never do. It depends on many variables. With a debt like 160k like you have, you can be fairly certain that they will sue or sell the debt to a collection agency who will sue. The timeline but my guess it would be at least a year from date of default.

For me personally it has been slightly over 4 years since my default. I started receiving letters from a debt collection agency about a year ago. Nothing has happened yet. 2 more years until SOL is up in my state. My debt is much much less than yours so hoping they don't sue. I also don't live in the USA, so makes it much harder for them to serve me.

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RevolutionSmall9854@reddit

im also living abroad- do you know if there is every any trouble at the airport? I'd still like to visit my family, but i am currently in trade school, living in another country. I can't pay shit from my master's degree loans (or get a job with said degree) and interest just started accumulating again after the COVID pause.

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morbie5@reddit

Are your federal loans in default? Are you planning on moving back to the US?

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RevolutionSmall9854@reddit

Not yet, but I don't make any money, so I imagine they will be. I'm starting in Europe for the time being

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morbie5@reddit

Any update on this?

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RecordingMountain585@reddit

still nothing happened

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morbie5@reddit

These are federal?

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RecordingMountain585@reddit

private

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morbie5@reddit

Have you looked to see what the statute of limitations is in the state you were living in when you took out the loan?

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RecordingMountain585@reddit

yes, 6 years. I'm about 4 years and 4 months in.

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morbie5@reddit

How much do you owe btw?

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RecordingMountain585@reddit

around 18k total

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morbie5@reddit

No cosigner?

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Unlucky-Persimmon-27@reddit

I’m interested to know too. In very similar situation

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morbie5@reddit

What is your situation?

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Unlucky-Persimmon-27@reddit

Long story short: had Sallie Mae loan for approx 6k 8 years ago. Had paid back what I thought was the total amount owed (approx 6k) years ago. Thought all was good and hadn’t heard from them in years until a couple months ago when they started calling non stop saying payment was needed and interest had nearly doubled to 11k. Never received a letter or anything from them in all this time so I assumed it was taken care of after my payment years ago. I just learned they filed with the courts to sue when I started getting letters in the mail from attorneys offering to represent me. I went to the clerk of courts site and apparently they filed but I haven’t been served. I know that’s “irresponsible” but even my federal loans I get letters from reminding me of status and when to reapply for deferment and such. Sallie Mae hadn’t contacted me once until it was a crap ton of interest and it had been years.

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RecordingMountain585@reddit

If you have not been served or they cannot locate you to serve you then the court would probably give the plaintiff a notice of deficiency. They would not be able to get a judgement without satisfying that deficiency. I experienced this first hand with an unrelated civil case. It ended up being dismissed and never refiled. Now its way past the SOL.

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morbie5@reddit

or they cannot locate you to serve you

I don't know how it is in most states but in some states just sending a certified letter to your last known address can be enough to properly serve you fyi

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RecordingMountain585@reddit

In most states and jurisdictions this would not be satisfactory. In my state, this is not satisfactory.

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morbie5@reddit

It might not be but that doesn't mean that in those states you need to be physically handed courts papers.

In my state a default judgement can be entered against you if they go thru enough hoops to try to serve you, physical contact is not required

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Unlucky-Persimmon-27@reddit

I can’t make myself “not-findable” though? lol like won’t they wait for me to get home or serve me at my job or something? I’m nervous if they don’t find me the Judge will just issue some random judgment that will have me paying them forever and wages garnished. How does this deficiency work? I thought it was past the SOL too (I’m in FL) But an attorney I spoke with said it’s not past SOL because “they don’t go away with student loans”. I see so much conflicting info and idk what steps to actually take lol

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morbie5@reddit

But an attorney I spoke with said it’s not past SOL because “they don’t go away with student loans”

If these are private student loans then that attorney is an idiot and you need to talk to another attorney

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RecordingMountain585@reddit

Well if they are private student loans, whoever is suing you NEEDS to properly serve you.

Also, private student loans there is absolutely an SOL and it depends on the state. Federal student loans have no SOL and the government doesn't need to sue you in order to get their money.

There are really many uniformed people on these subreddits. I am astonished at the amount of people saying incorrect things about how this all works. I wouldn't listen to most of the people here.

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morbie5@reddit

What is the statue of limitations in your state?

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RecordingMountain585@reddit

Federal loans are different than private loans. Failure to pay federal loans can get you into more trouble, private loans no trouble at airport.

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brokeboii94@reddit (OP)

I am strongly considering moving abroad myself

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Excellent-Jelly-949@reddit

If you need to lower your payments/interest on your Sallie Mae loans. I am a Student Loan Advocate, and can get you refinanced and in position to move on with your life! Book an appointment with me here: https://blinq.me/pcuvBDrBxQ0Mf8KrNLrw?bs=icl

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NolimitBank@reddit

Should I default or move abroad?

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nowaysalliemae@reddit

Do not worry about defaulting on private student loans, particularly from Sallie Mae. This company is the scum of the earth and they deserve every single default.

My wife successfully avoided paying back her private student loans ($80,000+), never got sued, and the statute of limitations expired. See this post: https://www.reddit.com/r/AMA/comments/5vvv48/my_wife_and_i_are_student_loan_defaulters_who/

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Unlucky-Persimmon-27@reddit

I have some questions if you’d be willing to answer. I’m in a similar situation but with much less owed. We made a significant payment years ago and I thought it was paid off. It’s been secretly accumulating interest for the last 7 years and I wasn’t contacted by them at all during this time until just a few months ago when they started saying I owe 11k in interest!! My mom is a co-signer but shes old and they’ve been harassing her and I’d like to get them off her back. I just learned after receiving a bunch of attorney letters in the mail asking to “help me out” that sallie Mae has actually filed with the courts, but I haven’t been served yet. I would have had no idea if I didn’t see the letters in the mail. Since it’s been so long am I out of the SOL? Kind of panicking and just found out yesterday

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Training-Tree8467@reddit

I defaulted in march of this year and my loan was sold this month, about 70k in loans

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Becoming_Mike@reddit

How long does it take to default?

Lots of letters/phone calls?

What's your plan?

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Chijesu@reddit

It’s hard to say..I had 120k in private loans but it has reached its limits since they haven’t done anything and now the statue of limitation is in effect …I still get calls from navient

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morbie5@reddit

If you are indeed past the statue of limitations you are pretty much free. You technically still owe the debt but legality they have no way to make you pay.

Are you sure you are actually past the SOL?

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Chijesu@reddit

I don’t know..Alabama is six years and Florida is 5 years. So far it’s been 6 years 3 months

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morbie5@reddit

Who lived in one of those states and moved to the other?

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Chijesu@reddit

I took out my loans in Florida but now live in AL. So either or the statue of limitation has passed from both states. I do get calls from navient to talk about plans. However that makes me wonder if I’m truly free from these loans

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morbie5@reddit

So either or the statue of limitation has passed from both states

Each states sets it own rules on when the statue of limitations clock starts. Some go by your last payment while others go by when you were first in default or even something else. You might want to check the exact rules in both of those states you mentioned.

I do get calls from navient to talk about plans. However that makes me wonder if I’m truly free from these loans

Of course because they would love for you to get on a plan and pay them even if they have no legal way of making you do so

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brokeboii94@reddit (OP)

Usually when I post about this people aren't very sympathetic but the loans at the interest rate and amount they loaned to me were predatory. Most people want to pay back what they owe but its simply not possible with what I make and trying to afford living expenses

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Chijesu@reddit

Correct. I wanted to pay it off also and I was going 800-1k a month for 2 years and it didn’t made a dent at all. It went u an extra few thousand. So I stopped during covid years.

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TravelingDebt@reddit

They don’t automatically sue, every case is different. Ppl with low amounts get sued, people with high amounts get sued. Mine ballooned to higher than your amount and I’m 2 years defaulted and has never even went to collections just keeps getting shuffled to Navient’s different debt collectors.

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Chance_Jury_7566@reddit

Another possibility is to start saving some money in a savings account in case they make an offer you find reasonable to pay (maybe in one or two years from now). Banks never have an incentive to negotiate with those who are current with their payments, so defaulting is your only option if you ever want to stand a chance of negotiating.

That's the plan I had in mind when I decided to stop paying in January of this year. It defaulted in June, and they charged off. For now, communications have stopped. I am not American and I don't live in the USA anymore. I also own $160,000. This is not enough debt to sue someone internationally, not in my mind. I also asked other Americans with similar debts who moved abroad, and they said they were never sued. So I would definitely consider it if I were you.

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RecordingMountain585@reddit

That is a lot of money. I am surprised you and others were never sued or at least attempted to be sued. I owe a fraction of that and also live abroad. I have received letters to US address which i have not lived at for years and also to my fathers email. Its been a year of these letters and emails. No legal action has been taken thus far.

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Chance_Jury_7566@reddit

Do you check that online? For me, specifically, I have no way of knowing because I don't live in the US anymore, no connection to the places where I lived and I have no family living there. And I have no cosigners in my contract, thank Lord.

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RecordingMountain585@reddit

Yes you can check online through your states civil court records. Should be civil or special civil depending on the amount they are suing for.

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Chance_Jury_7566@reddit

Thanks!

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AutomaticFeeling5324@reddit

It will be their last resort. Suing you is costly and a long drag out process. They normally start with letters, phone calls, and then more letter and more phone calls. If they determine it is too much trouble to collect then they will sell off your loan to someone else. Some collection company loves to go through the court and some don't.