Settlement Offer for a Private Student Loan
I took a Private loan initially for 16K and with interest fee and all that came up to 22K. Unfortunately, due to a financial hardship, my loan was in default and charged off due to 120 days outstanding.
I have been in communication with the Debt Collector. To make the long story short, they came up with a final offer to settle for 5K. What a generous offer! However, I would like to know the consequences if I'm taking this road and settle for 5K. Will I end up owing the IRS for the remaining balance?
Thank you in advance for your speedy response.
Make sure you get the settlement agreement in writing before you
Make sure you get the settlement agreement in writing before you pay it.
You will receive a 1099 that you will have to file as income with your taxes next year.
A 5K settlement on a 22K student loan debt?! Thats just downrigh
A 5K settlement on a 22K student loan debt?! Thats just downright amazing. You are a really lucky guy. Best of luck.
your credit report will also be damaged. The original delinquenc
your credit report will also be damaged. The original delinquencies and default will remain on your report. Also the tradeline will most likely marked as 'settled in full' or 'paid in full for a lesser amount'
consider yourself VERY lucky that the loan company was willing to settle. Everything i've ever read about private loans is that they don't settle because they can easily sue you for the full amount. And definately get EVERYTHING in writing before you send that payment