What Next
Posted by Hot-Time1122@reddit | studentloandefaulters | View on Reddit | 20 comments
Any help with be greatly appreciated. I defaulted about 2 years ago with Navient and Firstmark. I really want to settle with both companies. I do not answer their phone calls. They send me mail asking me to contact them for a settlement offer. They never include a proposed amount for the settlement in the letters. How do I find out what they a willing to settle for without restarting my SOL clock? I’m in TN. The SOL is 7 years. So I still have a long way to go before I run out the clock.
Aggravating_Storm493@reddit
Hey there. Sorry for responding to your old post. Don’t know if you’re still on Reddit. I’m dealing with Firstmark right now.
Was wondering how your situation has panned out since your post a year ago, if you’re willing to share. I’m trying to figure out my plan, but I can’t find that many people on the subreddit who’ve dealt with Firstmark.
Anyway, I hope you’re doing well and the loans are out of your life. No worries if you can’t respond.
Hot-Time1122@reddit (OP)
I have ignored my Firstmark loans. I settled 3 out of 4 Navient loans for 25 percent of what they wanted. The reason I have ignored Firstmark is because they send really vague letters saying call for a settlement offer. I’ve been afraid to call because I’m afraid they will ask for a crazy amount and speaking with them would start my statue of limitations over.
Aggravating_Storm493@reddit
Thank you SO much for the response, I really appreciate it. The only reason I want to go the settlement route with Firstmark is because I want to get my co-signer out of this situation. I feel horrible I did this to them, and I feel even worse if I wait it out when they don’t deserve it.
Re: settling your Navient loans, how did that work? Did they contact you with a 25 percent offer or did you negotiate with them on your own?
And how long did it take for you to get that 25 percent offer from them?
Again, no worries if you can’t respond, I’m grateful as is that you even responded in the first place!
Hot-Time1122@reddit (OP)
I finally answered the phone when they called. I offered the 25%. They countered with maybe 30%. I told them I couldn’t pay that much because I had already paid more than I borrowed. That was a Friday. On Monday they called back and accepted the 25%. I think it had been about 3 years since my last payment. I had an 800 credit score and paid on time every month before I defaulted. I’m glad I did because I was never going to pay them off paying the minimum every month.
Aggravating_Storm493@reddit
Wow, that’s a quick turnaround. Still sucks because we shouldn’t have even been in these predatory situations in the first place but I’m so glad most of this student loan nightmare is over for you.
You had an 800 before default, how is your credit score now?
To be honest, I really don’t care about my credit score because I’ll never be buying a home or car in my life at this rate, so what point is my credit? And my co-signer is in an elder stage in life where they have no plans to buy a car or home, so their credit needs are low. But I still don’t want to mess them up permanently, and hope the credit hit won’t stick on them forever.
Hot-Time1122@reddit (OP)
I’m currently about a 660.
Aggravating_Storm493@reddit
And this is with the fourth loan on your record as a default? To be honest, that seems pretty good all things considered. Yes not 800 but honestly I’ve seen way lower than 660 from people who don’t have student loans.
Anyway, I want to thank you from the bottom of my heart for taking the time to answer my panicked questions. I really appreciate it. You’ve helped more than I could have imagined and it’s giving me a lot of insight for what I’ll be needing to do. I hope you’re doing well!! Thank you so much again
DisembarkEmbargo@reddit
They never proposed a settlement amount? Really? That's so odd to me. They did that in many of their letters to me. Right now, it seems they aren't serious about settling if they aren't even giving you a percentage or $$. But I need more info.
Have the loans charge-off yet? Are the letters from Navient Account Recovery or still just Navient?
By what time do you need to settle? Are you looking to get a new car, house, or job?
Hot-Time1122@reddit (OP)
Yes they have charged off. I last paid about 2 years ago. The letters from Navient are coming from Weltman, Weinberg & Reis. The Firstmark letters come from Firstmark. I’m not in a rush to purchase anything. I just don’t see me waiting it out another 5 years for the SOL to pass. I thought it was weird that they have not included any amounts in their letters. I owe each company about 10k each.
DisembarkEmbargo@reddit
Hmmm, I feel like this could go several ways. Are you potentially judgement-proof? Do you have a consistent income or some money saved up to pay this debt?
Right now, My advice is to go on the cpfb website and find a letter template for a debt settlement offer. Fill in the letter with 15% of what you owe for lump sum. Bargain up to 30% of your debt but no higher. Maybe emphasize that you have other debts. My only concern about this is that they may want you to buy your lawyer fees.
Then wait on the other debt for a little while if you need to build up savings because they haven't started contacting you with a lawyer yet.
You could also contact a lawyer that has experience in this area to do your negotiating but they may tell you that the creditor won't settle for less than 80%. Creditors are usually game to settle.
jerseywillow364@reddit
I'm currently trying a strategic default with Navient. If you don't mind me asking, did you do the template letter to settle with them? I've got about $80k in debt with Navient, charged off to Navient Recovery now. They just sent an offer letter to settle for 60%. Would you feel comfortable sharing the % you were able to settle for? Thank you so much for your insight.
DisembarkEmbargo@reddit
I did not use a template letter to settle with them. The only CPFB template letter I sent to them stated that they cannot contact other people I knew about this debt.
I settled with them over the phone with a couple of relatives.
I settled for 30%. I used to owe $200k..
jerseywillow364@reddit
Thanks! I most definitely agree 60% is way too high. Especially considering I've paid back my entire borrowed amount with about $20k in interest.
I'm in a rare window of my life where, after being laid off from my job, I don't have to work for a bit. So I'm showing zero income for 2 years now. My husband holds all of our money in his own account. My Dad, who is my cosigner, passed away. So, it feels like the perfect storm to get these settled. My goal is 30% or less.
Thank you so much for your insight. I'm going to get that do not contact form and mail it out certified.
DisembarkEmbargo@reddit
Good luck! It's a bummer that you may pay twice over but it's so refreshing to not be under Navient's thumb! I still have federal student loans but my life is 3x less stressful now.
jerseywillow364@reddit
I got very lucky with my federal loans, and they were recently forgiven. I was part of the Sweet vs. Cardona lawsuit for borrower defense. I'm not sure what school you attended. Mine was a for-profit school that used predatory practices, so my application was now approved under the lawsuit.
DisembarkEmbargo@reddit
Sorry about that but also congrats!
I unfortunately (or fortunately) went to a state college for my undergrad. However, I went to a campus that was kind of on probation for my master's so maybe there will be a lawsuit? Thankfully most of my federal loans are from that time.
Either way, good luck with your settlement! Remember what leverage you have and what the creditor could reasonably do to damage your finances, credit score, etc.
jerseywillow364@reddit
If you believe they might have defrauded you for your Master's I encourage you to look into the borrowers defense program. Worth a shot. Best of luck!
Hot-Time1122@reddit (OP)
Thanks for the information. I’ll look into those things.
BrooksBorrowers@reddit
You can’t. Once you start negotiating you are taking acknowledgment of the debt. If you want to settle, you have the max amount you are willing to settle for in a bank account, you hire a good lawyer who’s versed in student loan and/or debt negotiations contact them. You say I’m willing to pay you this today and walk away. It’s a risk but so is waiting for them to sue you until the clock runs out.
SettleBankDebt@reddit
Every company has settlement parameters. You have to feel them out.