Student loan debt after reconsolidation twice

I believe that the settlement is going to be for less than the actual amount of the loan...so it'll probably say just that on the credit reports.

Like I said ~ when you do the rehab program...all of that negative stuff is completely erased and it looks like it never happened...it's as if you were ALWAYS current. A settlement will not give you that kind of a benefit.

not necessarily, I rehabbed a federal loan a few years ago and while Great Lakes Higher Education erased the negative marks, Sallie Mae never did. And according to Soaplady, Sallie Mae is under no obligation to delete the mark.

I too have a student loan that is giving me grief. My tuition was only $7000, but after 18 years of paying when I could and filing forebearance after forebearance it accrued to $24,000! I began to attack it with avengence 4 years ago, when I finally got a job that paid well enough, and have widdled it down to $13,000, which more than pays back my Tuition and then some. My question is, is there a way I can settle with a reduced amount, say half of the $13,000 owed? I recently lost my job and once again had to file a forebearance. I just want this to be finished. It has been a plague for 21 years now. Any advice would be great.

Nope. Your loan is government insured, which means your lender has no incentive to settle since your guarantor will pay them in full. The only time you can settle on a student loan is if you default....however defaulting adds additional collection fees to your balance and only then do they settle but usually not for more than the collection fees they have added. Settling off on interest and principal is very rare.

So, if these companies are purchasing the student loan debt for PENNIES on the dollar, would it not make sense for the BORROWER to settle for penies on the dollar owed? Its sounds like a system that is beneficial for those in default, but yet the power that comes along with greed is getting in the way!
Does the word SCAM, come into the lexicon?
The hole the borrower is digging keeps getting deeper by the month with payments. Virtually endless.
And it does not end upon death of the borrower.
Wow.

Exduzit....maybe you should do some research for spouting your mouth off about something you know absolutely nothing about. It you had bothered to read this forum, you would have learned a lot.

Student loans in both the federal and private systems are NEVER SOLD. Period. For DOE and FFELP loans, the guaranty remains with the federal government as it is FEDERAL debt. Taxpayer money. Hardly a scam. Defaults actually end up costing the lenders and servicers money.

SOAPLADY Said
"government insured, which means your lender has no incentive "to settle" since your guarantor"....

which means, the bank was paid by the US government DOE...unlike a credit card, who sells the debt for pennies on the dollar and a CA bid on those debts...
What am I missing?

Government insured NOW sounds VERY misleading..
BTW
How many student have defaulted on their student loand since 1980?

PSS:
Hey SOAPLADY, didn't you say you made over 100K as a CA?

No...again you are WRONG. DOE retains ownship and they place the accounts with CA's...it is called third party collections. The CA's on average earn a 9% commision.

FFELP (Federal Family Education Loan Program)loans are originated thru regular banks...Citibank, Wells Fargo, Credit Unions etc. They are federally insured by a guarantor (either regional or state) and the DOE.

Yup....made well in excess of $100K one year. However I was on average collecting in excess of $5 million in defaulted loans per month.

I RECEIVED A LETTER FROM NYSHEC ON 1-17-09 THAT SAID TO PAY $3589.00 IMMEDIATELY, I RECEIVED THE LETTER ON 1-22-09, WHEN I PHONED, I WAS TOLD THEY SENT THE ACCOUNT TO ECMC FOR COLLECTION...5 DAYS AND THEY PASSED TO COLLECTION...WHY THE SHORT TURN AROUND?
WHAT DO I DO NOW?
I HAVE THAT SAVED THAT AMOUNT UNDER MY MATTRESS.
I WORK AS A PART-TIME WAITER...
CAN I MAKE AN OFFER TO SETTLE?
IS IT BETTER TO WORK WITH NYSHEC OR ECMC?

THANKS FOR ANY INSIGHT YOU CAN OFFER!

ECMC is also a guarantor...did you file BK in the past??

If NYHEC is telling you that ECMC has the account, you must work with ECMC.

Settlements for student loans are not like credit card debts nor is the collections. Settlements are usually no more than dropping some to all of the collection fees they added on top of your balance. Call and talk to ECMC...although they may have placed it with a CA. You also have the option of doing a rehab or a consolidation to resolve the default.

NO BK...
ONE SCHOOL I WENT TO WROTE OFF THE DEBT OWED AFTER I MADE A PAYMENT OFFER TO SETTLE.

NOW, IF I CALL A SCHOOL AND NEGOTIATE A SETTLEMENT OF DEBT, IS THAT FORTHRIGHT AND LEGAL ON MY PART?
AFTERALL, IT IS MY DEBT.

WHAT IS A 20 YEAR CLAUSE?

I ALSO HEARD
- IT'S BEST NOT TALK TO A CA ON THE PHONE.
- TO GET YOUR TERMS IN WRITING FROM A CA.
- TO SEND ALL CORRESPONDENCE VIA REGISTERED TO CA
- PENALTIES & INTEREST ARE ADD ONS TO PAD CA PROFITS.
- TIME IS ON YOUR SIDE.
- NEVER LOOK TOO EAGER TO SETTLE.

WHAT DO YOU FEEL ABOUT THE ABOVE STATEMENTS.
ARE THEY PERTAINENT TO STUDENT LOANS?

THANKS AGAIN..
SO MANY QUESTIONS.
SO LITTLE MONEY!

Schools dont write off the debt per se....it just becomes inactive Your transcripts will be frozen and if you attended a public school, they can file for tax offset.

No clue what a 20 year clause is.

When dealing with student loans, forget everything your have heard.
-Student loans will not negotiate via the mail, only over the phone.
-You will not get anything in writing...you have a promisorry note already in place covering all the terms. You agreed to balance in full on demand in case of default.
-there will not be any correspondance to send
-interest you already agreed to when borrowing the funds and are federally set each year. Collection fees are charged by your guarantor up to 25% and are also federally mandated.
The CA earns an average of 9%.

SO WHEN I RECEIVED A LETTER SAYING TO PAY $3589.00
- WAS THAT THE INITIAL AMOUNT?

WHAT DO I DO NOW?
I HAVE SAVED THAT AMOUNT UNDER MY MATTRESS.
ALSO
WHAT CAN THE BORROWER NEGOTIATE, WITH 9% IN THE BACK OF THE CA's HEAD...PRINCIPLE W/ O FEES?
OR IS IT A MOOT POINT?

WHAT WOULD YOU DO?
THANKS AGAIN

How long ago did you default? usually the collection fees are added at 60 days post default.

ITS BEEEN A WHILE...I DONT KNOW?
ITS NOT BEEN FOUR SCORE AND SEVEN YEARS AGO...
A LITTLE LESS THAN THAT.

IS THERE A FEDERALLY MANDATED CUT OFF POINT?

I'VE READ SOMEWHERE LIKE 20- 25 YEARS PAST POINT OF ORIGINATION OF DEBT, SOME SORT OF NONSENSE...

WHATS YOUR TAKE?

you mentioned
"the collection fees are added at 60 ..."

There is no SOL ....ever.

If you have been in default years, then your collectionn fees are already part of your balance.