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Posted by blondie-7919@reddit | studentloandefaulters | View on Reddit | 21 comments

I received a letter from Allied Interstate saying they are contracted to Navient to collect a debt. My balance is $91,250. I have paid Navient over $25k and stopped about 4 years ago. I have not communicated with Navient for 3 years. What should I do? This is the second letter from Allied.

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morbie5@reddit

Have they offered any settlements?

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blondie-7919@reddit (OP)

37k. I borrowed 35k originally and have paid them 25k. My balance is 91k.

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morbie5@reddit

Did they say they were going to sue you?

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blondie-7919@reddit (OP)

No.

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morbie5@reddit

You said in another comment 'They are suing me for 91k'

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blondie-7919@reddit (OP)

I meant taking me to collections for that

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morbie5@reddit

I see, that is not the same thing as being sued. It seems you have about 2 years left before the statue of limitations is up.

Have they offered a settlement at all?

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blondie-7919@reddit (OP)

Yes 37k but I can’t afford. I am in medical debt as well due to several surgeries.

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morbie5@reddit

How much do you owe in medical debt?

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blondie-7919@reddit (OP)

25,000

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morbie5@reddit

Do you owe that directly to hospitals? Are you on a payment plan?

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blondie-7919@reddit (OP)

I am currently on a temporary payment plan but I applied for financial assistance. And that cost is rising because I have a lot of health issues.

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morbie5@reddit

How long have you had the balance with the hospital?

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blondie-7919@reddit (OP)

Well it started in 2020 and just continued to grow.

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blondie-7919@reddit (OP)

Also, I originally borrowed 37,775k and I’ve paid then 27,300k. I just looked. They are seeing me for 91k. I understand interest but this is a joke. My uncle was going to help me sue them (he was a lawyer) but he committed suicide last year. :(

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RowdyRoddyPiper7889@reddit

What state? Does the letter say anything about the creditor being unable to sue due to the age of the debt? (Statute of limitations)

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blondie-7919@reddit (OP)

Indiana

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RowdyRoddyPiper7889@reddit

According to the Internet, there is a ten year statute of limitations in Indiana for your debt. That means they have 10 year to sue you since the time that it became due in full thanks to default. It's also possible that the contract itself will tell you which state's statute of limitations the contract is intending to use, but courts won't always honor those clauses. If you stopped paying 4 years ago, the creditor can probably still sue you at this point.

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