How to fix a delinquint student loan? (to help my credit score)

For just about anything you want to get off your chest about credit cards.
5 posts
jameswilson81
 
Posts: 1
Joined: Sat Jun 29, 2013 5:48 pm
Location: los angeles/ca

How to fix a delinquint student loan? (to help my credit score)

Postby jameswilson81 » Sat Jun 29, 2013 5:56 pm

Hello,

So in 11', my private student loan by Sallie Mae went delinquent and now I owe around 13,000. They transferred the loan over to MetCredit and now I'm wondering should I:

A) Set up a payment plan now
B) Save up around 5,000 and negotiate a deal
C) Wait 5 years until its removed from my history

I'm trying to find the best solution for my credit because as of now this is whats really hurting it.

Thanks


MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Mon Jul 01, 2013 4:34 pm

Since you want to fix it to fix your credit the only way to do that is get it right.

As far as I know student loans are different from other installment loans, and they can't be discharged in BK normally (there are exceptions to everything, but it's hard to do this) and I have read the IRS can withhold your tax return to pay on these as well. They are not as easy to dodge as other types of debt like credit card. And since you want to make it right anyway, and not dodge it, I would contact them and get a payment plan going. 13k is not a lot of money honestly and you should be able to re-negotiate decent payment terms.

My loans were backed from Uncle Sam and he really doesn't like it when you try to stiff him, I'm not sure if a private loan is backed or not, but in any case if you want to make things right setting up a payment plan and paying them would be a great first step towards that.
And I mention that only because mine were backed by the government not that I tried to stiff them on it, I knew better than to try that. When I lost my job a couple of times I had to defer my payments for 6 months, but they give you deferment time for things like that so it was all good.

User avatar
djrez4
Centurion Member
Centurion Member
 
Posts: 1468
Joined: Tue Jul 31, 2012 12:20 pm
Location: United States

Postby djrez4 » Mon Jul 01, 2013 6:24 pm

Google "student loan rehabilitation."
[RIGHT][size=100]- Sapphire Preferred - Freedom - Ink - Platinum - Everyday Preferred -[/size]
[/RIGHT]

mdl28
Centurion Member
Centurion Member
 
Posts: 211
Joined: Thu Mar 21, 2013 10:18 pm
Location: TX

Postby mdl28 » Mon Jul 01, 2013 7:36 pm

I had same issue. But i just deferred until I was out of that option. Then comes time for me to buy our 1st home and it came back to bite me. Call them up work out a reasonable payment plan. I had them go as far a right a formal letter stating I was caught up, current and in good standing as far as my obligation to paying them back goes. Just dont run away or dodge issues that can easily be fixed.
MDL

Amex Gold Prem'r
Amex BCP
Amex Green
Barclays Ring Platinum MasterCard
Citi Diamond Pref'd
Chase Sapphire Pref'd Visa Signature
Chase Freedom MasterCard
Discover It
New York Life Visa Signature

mdl28
Centurion Member
Centurion Member
 
Posts: 211
Joined: Thu Mar 21, 2013 10:18 pm
Location: TX

Postby mdl28 » Mon Jul 01, 2013 7:37 pm

Correction.. --> Write a formal letter not "right"
MDL

Amex Gold Prem'r
Amex BCP
Amex Green
Barclays Ring Platinum MasterCard
Citi Diamond Pref'd
Chase Sapphire Pref'd Visa Signature
Chase Freedom MasterCard
Discover It
New York Life Visa Signature



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 3 guests