May 20, 2020 at 6:14 pm #68275
@psalm23 yes our situations sound similar! Been checking with my MC since she said she would be sending me to UW. Every time I check with her she says her manager is looking at my file and the issue is my student loans! All other loans I have I’m on IBR. The private set defaulted with Navient and we have since settled and I’m paying a monthly amount for the next couple years! In a different post I asked Mr. Trumble and he stated that after 6 months loans were considered rehabbed. Like you said that’s not an option with private loans! I also emailed member services but I haven’t gotten a response yet! All of my collections have been paid. This seems to be the only hold up with no legitimate answer and it sucks! Thanks I would appreciate that! My last action plan had my PSS MRF and a statement was needed from a different loan company which has since been done. I’m just straddling the fence at this point!May 20, 2020 at 6:25 pm #68276tweetie8183Participant
I am following this as I am in the same boat. I attended the ATD event this past weekend and was instructed to get into a repayment plan. These loans are private loans as well and I recently got a letter from them for a settlement payment plan that is significantly less than my loan amount. In the letter it also states that due to the age of the account, they are unable to file suit but if I make a payment or a written promise to pat, that the time will reset. My 7 year mark is the beginning of next year so there is a chance this will fall off my credit. I definitely don’t want to “awake the beast.” I pay my federal loans monthly. I’m so confused on this. Hopefully some clarification will be provided soon.May 20, 2020 at 6:27 pm #68277
@BlessedMom88 Wow, that’s great your MC said she would send you to UW!! Mine made it seem like it would be a long time for that and basically told me stop updating my WebFile until I paid them off or rehabbed them (grrrr, so frustrating!!). My federal loan is on IBR and has a pristine payment history. These private student loans are the bane of my existence. I am pretty sure I can settle these if absolutely needed but I rather have those funds go to interest buydown. We’ll see what they say. I also have 13 months left on my car loan and am so close to having that payment not count in my DTI once I get it to 10 payments remaining. I just want to get over this hump!
May 20, 2020 at 6:34 pm #68279
- This reply was modified 6 months, 2 weeks ago by Psalm23.
@tweetie8183 sounds like you are past the statute of limitations on these! I wouldn’t restart the clock in anyway, especially if they are going to fall off altogether! It might be worth waiting until then and not pay to settle and then have the clock restart for another several years. Are your private loans showing as charged off on your credit reports? I’m surprised they told you to get on a repayment plan considering they are close to the 7 year mark. That worries me a little. I wish the MCs and NACA in general would be more informed on private loans because they are just personal debt. I don’t know why they are being treated the same as federal student loans, which never go away.May 20, 2020 at 6:39 pm #68280
@psalm23 yeah that was the plan after our last meeting and of course here I am unsure with no answers! Guess she spoke too soon! The ATD makes the process seem so much longer since the responses are even more few and far between! That’s crazy! Thought we was supposed to update our file regardless! Every MC is different and it’s hard to get definite answers! @tweetie8183 hopefully we all can get some answers soon! Either of you in the FB groups? Can find each other and keep in touch outside of the forum and stay updated on this issue of ours 🙂May 20, 2020 at 6:44 pm #68281
@psalm23 I agree! I went through workbook and it said that private student loans were considered as installment debt! If that’s the case payment plans settlements or whatever should be considered and added to our DTI like any other installment loans. But it doesn’t go in depth so it’s kind of hard to get an understanding of what they want as it relates to private loans!May 21, 2020 at 4:12 pm #68343
@BlessedMom88 No I’m not in the FB groups, how many are there? I would love to connect outside of this forum. Let me know so I can look you up! 🙂May 21, 2020 at 4:20 pm #68344
Yes @psalm23 there are a few! Kind of reminds me of the forum! Everyone is involved and asking questions with helpful responses. There are a couple of staff who offer input and suggestions as well.. Shara B. (Illinois) I think I’m the only one 🙂May 22, 2020 at 4:15 pm #68359TTrumbleMember
I have no idea how it happened, but I’m just seeing this thread for the first time today.
Private student loans have a lot of differences from the federal ones, and the first one is that they are in fact standard installment debt. So the rules regarding Statute of Limitations that have been discussed here do apply. Also, rehabbing the loan would not be an option anyway since it has clearly been sold off to a collection agency, but there was one small statement that gives away the real issue here.
The statement, “I get random letters from a different collection agency every few months” reveals the real problem. The fact that you are past the Statute of Limitations does not mean they cannot continue to attempt to collect on the debt. Every time that you get a letter from a different agency, that means the loan has been sold from one agency to another, which happens so often that it looks like a game of Hot Potato sometimes.
Every time it goes to a new agency, it becomes a renewed debt in some ways. Even just that one letter means it is an active collection, regardless of what you may see on a credit bureau file. In some states that can even reset the clock on the SOL. It’s actually a very old bill collector’s tactic and probably has a lot to do with why it’s still reporting on your credit file every month.
Long story short, because it is a private student loan, it could easily wind up being a hard stop for you in the process, unlike the options available with a federal student loan.
If the loan has been passed along from agency to agency, they probably paid no more than three to five cents on the dollar for it, which means there is a potential to settle it for a small fraction of the actual loan amount. I hate to be the bearer of bad news, but you are without a doubt going to have to deal with the loan instead of waiting for it to go away.
Online Operations, NACA
firstname.lastname@example.orgMay 22, 2020 at 4:50 pm #68360
@ttrumble Thank you for all that information!! It was exactly what I was searching for.
These loans are on my reports as Discover Student Loans, charged off years ago, with the date of first delinquency in 2016. They report every month as a Charge-Off, even though various collection agencies are attempting to collect on them. The collection agencies themselves are not reporting and don’t show up on my credit reports. So, even if it is an “Active” collection, how does it not fall under the stipulation that it can’t be less than 24 months old?
I figured this would be the hard stop I’m facing, if my MC told me to hold off on updating my file until this was resolved. I’ve worked hard the last two years and have a lot saved up so I am going to focus my energy on settling these. What are the things I will need to move forward in this process? Obviously, a Settled in Full letter. Is that all?
Thanks again for your very well worded response! It puts me at ease having clear steps to move forward!
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