Settling private student loan debt
Date: Tue, 08/10/2010 - 13:59
I have a private student loan consolidation, by Key Bank, in default. I was contacted by a collection agency, Creditors interchange, and without me really asking offered a settlement of 60%. I sent them a dv letter, and haven't heard from them in a few months, except a letter confirming receipt of the dv letter.
Has anyone had experience settling your private student loan debt? With whom? How did negotiations go? What percentage did you settle for? Thanks.
60% is excellent. How long has it been in default for?
60% is excellent. How long has it been in default for?
You know I'm not really sure, I think about a year, I was contac
You know I'm not really sure, I think about a year, I was contacted by the CA on behalf of the OC about 3 months ago if that helps.
Obviously, there's a lot more info about CC debt and less about private student loan debt. I did read somewhere that private student loan debt can be treated like any other unsecured debt, like credit card debt, except of course it can't be discharged in BK, but settlements can still be done. I'm wondering if they offered 60% right off the bat, what they might settle for with a little haggling, as I don't have 60%.
60% is low, I wouldnt expect any lower. Just an FYI, private
60% is low, I wouldnt expect any lower.
Just an FYI, private student loans will and sue actively sue as a course of business. Your DV request may well have triggered your account being placed with a law firm. DV's are never a good idea with any student loan.
Why would sending in a DV request cause the account to be placed
Why would sending in a DV request cause the account to be placed with a law firm?
Sending in a DV basically shows that you might be trying to diff
Sending in a DV basically shows that you might be trying to difficult or using it as a stall tactic. The CA's dont have the time to deal with it as you could have made one phone call to Key Bank to verify for yourself. Yes you have the legal right to DV but often with student loans it comes with consequences.
Interesting, I take it you're a collector, I appreciate your ins
Interesting, I take it you're a collector, I appreciate your insight. I've read others say that when you send a DV letter, the collector realizes you understand your rights more than the average consumer, and are less likely to be taken advantage of. I've also read that some will send the file back to the original creditor rather than take the time to get the info, easier to go after those files where the debtor doesn't assert their rights.
I remember once having a verizon bill that I knew I didn't owe. I had proof I paid. It wasn't a big amount, about $100. I started getting letters from a collection agency, which I just ignored (I didn't know what I know now). After a while I started getting letters from a new collection agency, when I ignored the first. I figured it was sent back to the original creditor who then reassigned it to a new CA. By then I found this site, so I sent a dv letter, haven't heard anything from them or any other CA since.
I was a student loan collector for over a decade. And a financi
I was a student loan collector for over a decade. And a financial aid officer. Past tense.