I’m looking into filing bankruptcy because I have too much private debt that’s become unmanageable. I’ve never filed before and I also have private student loans through Sallie Mae and Navient that I’ve defaulted on and have been charged off and sent to a collectors agency. If I file for bankruptcy, will that reset the SOL for my student loans? Most of my loans were closed over 2 years ago and the total amount is about $67k, but I live in Ohio which has a SOL for 6 years. I’m just trying to find out if filing for bankruptcy will help me or hurt me at this point.

I’m in the process of filing for temporary disability & having my doctor sign off to hopefully get my loans forgiven, however, I was wondering if the disability is approved, will they collect from my co-signer??

I’m worried bc my ex co-signed and he has like a house and kids now. I don’t want to put this burden on him. Like it’s the reason why I’ve been struggling to pay these two Sallie Mae loans this whole time.

I asked the Sallie Mae representative and she said no that they won’t go after the co-signer but I don’t believe her I feel like they will go after him.

What are your thoughts??

What happens if they can't find you to summon you to court because you are overseas? Will there be a debt judgment against you? And what would the implications of that judgment be for foreign employment and visas?

A little background to start. I defaulted on federal student loans in 2012, 2019 they dropped off my credit report. I don't hear anything through the pandemic pause. Then resumption of payments, I see reports that lenders are reaching out to borrowers, but I still hear nothing. Fast forward to today, I received a letter telling me I have until the thirtieth to register for the SAVE plan or they will report the loan in default.

So my question is, how screwed am I? I looked a few years ago, before it was removed from my report and my income-based repayment would have been over $1500 a month, which would destitute me at the time. I can't imagine what it would be now, years later (the interest is insane). Can I ignore the letter and hope it doesn't reappear on my credit report? I know this is a situation of my own making, but student loans are the worst kind of predatory lending.

Received a civil action summons today for private student loan debt from 2006. Not sure what to do. Has anyone gone through this?

Any help or recos very much appreciated.

I’m in a tough spot financially and need some advice. I currently have a maxed-out Graduate Line of Credit (LOC) with RBC for $115,000 and a $40,000 loan from the BDC for a startup. I'm about to move to the UK with my spouse on a work visa, but I’ve been unemployed, and the interest and payments on these debts are pushing me toward bankruptcy.

I recently spoke with several Licensed Insolvency Trustees (LITs) in Canada to understand my options. Surprisingly, they all suggested that I could essentially ignore my Canadian debt once I move to the UK. Here's a summary of what they told me:

1. Credit Score in the UK: My Canadian credit score won’t affect me in the UK, so there’s no immediate consequence there.

2. Debt Collection: They mentioned that debt collection agencies in Canada won’t be able to track me down in the UK and will eventually stop trying to collect.

3. Creditor Proof: Since I won’t have any assets or income in Canada, I'm considered "creditor proof," meaning creditors can’t seize anything from me.

4. Statute of Limitations: In Ontario, creditors have only two years to sue for debt collection. By the time I might consider returning to Canada, the statute of limitations could make it easier to negotiate a settlement for much less than what I owe, perhaps even "pennies on the dollar."

5. Bankruptcy or Consumer Proposal: They suggested that filing for bankruptcy or a consumer proposal in Canada while I’m overseas might not be worth the effort. Some LITs even advised against going through the formal process, saying it's too much hassle.

On the personal side, I feel conflicted. I’ve never missed a payment before, and the thought of just walking away from my obligations feels wrong. However, given the advice I’ve received and my current financial situation, it seems like the most practical option.

Some LITs did say that bankruptcy might be the way to go, requiring a $2,000 fee to handle everything and discharge my debts. They assured me that the process would be straightforward and wouldn’t involve much scrutiny. But I'm concerned about being abroad during this process and not fully understanding the legal implications.

My Dilemma:

Should I follow the advice to ignore my Canadian debt once I move to the UK, given that I’m currently unemployed and could use whatever money I have for living expenses? Or should I consider filing for bankruptcy to officially discharge my debts, despite the cost and potential complications?

Any insights or experiences would be greatly appreciated, especially from those who have faced a similar situation. I’m trying to find the best path forward while balancing my financial future and my moral obligation to repay what I owe.

Hi I am about to leave the country because my visa ended and I have $45K in PRIVATE student debt (SOFI/MOHELA)out of an initial $79K debt. I will go back to my country, and the wages there will make it impossible for me to pay back.

1.- How do I contact my lender to negotiate? just the main phone number? or do I have to default for them to contact me?

2.- How much should I offer to pay? 25% ,50% ,75%?

3.- Do I need an attorney for this?

Was thinking of moving to a new state. Talked it over with some family and they’re gonna give me the money. I want to settle for less than I owe which is why I stopped paying in the first place. I hate the idea of paying these sharks so much when I’ve already paid them for 15 years straight. Has anyone called them and tried to settle or should I wait for them to contact me?

Over 140k (and rising) with the infamous Sallie Mae. I live in France but am American and will remain in France permanently.

My loans are currently in pause, and I will do interest only payments under the graduate program loans program for 1 year as I am currently trying to find a full time job while working an internship.

I am only doing this so that I can eventually refinance and get my parents off as co-signers. They do not support me defaulting and getting sued so they are not of course willing to support me through this so I’d like to refinance to get them away from these loans so it’s only my problem.

Has anyone does this? Refinance and then never make a payment, do intended default, get sued and settle for a lump sum?

My goal is to start saving now and once I’m employed full time so that i can settle fast and just get these loans off of me. I’m even planning on living on a dangerously low budget for a year or two so that i can save up for the lump sum and get it over with.

One last question - with any loan amount and getting sued, is it possible to negotiate a lump sum? For example if by 2026 I owe $123k, do you you think if i have a realistic and respectable lump sum ready to give on the second, they’re more likely to accept that amount vs. a payment plan? Any experience with that and negotiated an amount would be so nice to hear about !

Hi there! I have a private undergraduate loan out with college ave that was originally 24k and is now at almost 50k due to the insane interest rate.

I initially took it out when I was attending college in the state of PA. I was living in student housing there but my legal address was still in NJ. The co-signer on my loan lives in NJ.

If I were to strategically default, I want to know if collections would consider this a PA or Jersey debt since they only have 4 years to sue in PA and 6 in Jersey. Can anyone tell me how that is determined or where I could go to find out? Thank you!

I’m currently enrolled in a debt settlement program through Beyond Finance for two accounts. The first account is in the process of being settled as I’ve managed to make sufficient payments to my dedicated account. However, I’m facing a significant challenge with my second account, which is a private student loan.

The debt settlement program has informed me that they won’t contact my private student loan creditor until I’ve accumulated enough funds in my dedicated account. I owe $52,500 on this loan, and since I haven’t been able to make enough payments, I was told that the loan is defaulting if I dont make a payment before August ends.

I’m currently unemployed, and I’m concerned that a defaulted loan could severely impact my credit score, potentially hindering my chances of securing a new job. Given this situation, I’m seeking your advice on whether it might be better to remove the private student loan from the debt settlement program and start making payments to the lender directly.

I would greatly appreciate your guidance on the best course of action to take in this situation.

Just got served by Rock Creek Capital(sallie mae) and am being sued for $110k and have no idea what to do. I went to school in PA but am being sued in NY. How do I fix this? I can't have this affect my cosigner:/

I need some advice, posting with an alt account so I don't get doxxed. I'm posting this to a few other subs too so if you've already read my story I apologize.

Back in the late 90s my mother took out a student loan. It was a private loan that she got directly from a bank, she did not get it through a school. The loan was originally with Sallie Mae, but eventually ended up with Navient which is where it's at now.

The original loan was for about $15k. She never paid more than the minimums, then when my dad died a little over 10 years ago she stopped paying it regularly. She'd send in a payment here or there to bring the account current again, and she got it put on forbearance multiple times at Navient's suggestion which allowed her to not have to pay on the loan, but it still accrued interest. About a year after he died she declared bankruptcy, but of course she couldn't include the student loan in that.

During COVID she didn't pay at all because she thought it was covered by the federal payment pause which of course it wasn't because it was a private loan. She didn't open any of the letters they sent her or answer any calls or pay anything on it, until one day she decided to answer because they'd been calling her constantly. She was told that it was about to go into default, but after talking to them and telling them her situation they put it on forbearance for a year. This has happened a couple more times since.

Fast forward to today, she's getting calls from them again. She answered one and was told she needed to send them $50 to make the account current, then setup a payment plan.

We've looked into all the student loan forgiveness programs we can find, and she doesn't qualify for any. Most of those programs are for federal loans and hers is private, so that disqualifies her straight away.

She doesn't qualify for the Sallie Mae/Navient settlement because her loan was originated prior to the dates listed in the lawsuit, even though she's in this situation primarily because Navient engaged in the forbearance steering tactics as alleged by the lawsuit.

She doesn't qualify for Navient's School Misconduct Discharge program because she originated the loan directly by herself, not through a school, and even though she did attend a couple classes at one of the schools listed in that program she wasn't coerced into taking the loan by any officer of the school so she wouldn't have any evidence of that, and neither of us are comfortable making that up.

Here's the deal, she's in her 80s, her only income is social security. She has no assets, she doesn't own a home. She lives with me half the year and my sister the other half. The loan has basically doubled from what she originally borrowed because of interest.

At this point, I'm not sure what to do. If she were to stop answering their calls and letters, and stop paying altogether and let the loan go into default, what's the worst that could happen?

I'm thinking they'll probably just write it off, but even if they sue her once in court the judge will probably see that she's just a sweet old lady with no real income or assets and order the charges dismissed. Even if she does get a non-sympathetic judge the worst they can do is garnish her social security, right? And even that would be limited to just a small percentage, correct?

Hello,

I keep on receiving emails and etc from Navient…am I really charge off/defaulted? I assume once you defaulted/charge off it belongs to another debt collector no?

I have student loan debt with Firstmark, which I have had for probably 15 years. I've made a lot of payments on it, but have also missed a lot of payments because I don't have much money.

For the past 8 months or so, I've been able to make monthly minimum payments, even though I was still behind several months from missing old payments.

My original loan amount was for about $18,000, which I'm pretty certain my parents cosigned on. I've made about $13,000 in payments over the past 15 years, but my account is still at $17,000. It feels like i'll never work my way out.

My fiance and I opened a joint bank account this past year, and back in June we decided to put everything together in the shared account.

In July I went to my Firstmark account to make a payment over a week before it was due. I removed my old bank payment option and used our new joint account and made my monthly payment.

About 5 or so days later I get an email from firstmark saying my payment didn't go through, so I went back to my account and re-entered it and tried to pay again. 5 more days pass and I get another email from firstmark saying it didn't go through. At this point it is past the due date for my payment, so I thought this is bad, and just used my old bank account. The payment went through. whew!

Early this week I find a letter from TSI (Transworld systems Inc) debt collection saying they are trying to collect the debt I owe. I then log in to my firstmark account, and the status of my loan is now in collections. The amount in the letter ($17,000) matches up with what I owe firstmark, so I know it's legit.

I am devastated. I didn't want that to happen and I tried hard to actually make the payment.

I then called firstmark and the person I talked to said they see that I tried to make two payments in July, but they didn't go through. They could also see that my third payment did go through. But since it was sent to collections already, there was nothing they could do. The woman I talked to said that it shouldn't have happened since I tried to make payments, and that she heard that the same thing happened to someone else the other week, but she doesn't know what came of it. She also said she was sorry this happened. She said she would send an email to a supervisor explaining the situation and they would get back to me the next day.

I didn't hear back from them the next day. In hoping that they would fix it, I went onto my firstmark account and made another payment, so just in case they were able to take it back from collections, I wouldn't default again. In my firstmark account, I was able to successfully make a payment, even though the status still said collections. So the following day I called again. I somehow ended up with the exact same woman on the phone, and she said the supervisor said no and I'm essentially out of luck.

I have talked to my fiance about the situation, and we have decided that we can use our savings to pay off the entirety of the loan, and tighten our belts for a few months as we try to save up again. but we also decided I should try to negotiate for a smaller amount.

I haven't called TSI debt collection yet because I want to study up and understand everything. I would really love to avoid this affecting my credit, and more importantly my parents credit. And aside from being late and missing payments, I'm unsure what has been reported to crediting agencies already.

Can/should I try to settle with firstmark? From what they said to me, it sounds like now that it's with TSI it is out of their hands, but I am still able to make payments. Should I skip firstmark and settle with TSI immediately?

I know this sub is about defaulting and never paying, but I don't want that to be an option for me since I've already defaulted. I want to make things right. In some ways realizing that we can afford to pay it all is a silver lining, since it'll take a while for us to recover, but we will recover, versus staying persistently in debt with firstmark forever even after paying thousands.

Any suggestions?

Currently being sued after defaulting on several navient student loans. I paid a lawyer to handle some of the suits-who basically told me to offer to settle (I have no money) or I will probably get a judgement against me and garnishment.

I am looking into bankruptsy, but I won't be able to afford to file until I stop paying all my credit cards/loans and save up for about 3 months. I just got served papers for another suit-I don't want to pay more money to the current attorney-how should I respond?

My partner has 160k student loan debt through Sallie Mae. Income is about 42k. Her mom is a cosigner and makes about 80k. Neither have assets besides cars. Should she default?

We want to have a family and stuff- but numerically this won't be paid off til she's in her 40's. Also, I make enough money to cover my home and most of the expenses, and am not on the student loans. She currently pays a very small amount to me for rent, and the rest goes to student loans. Any advice is appreciated, we're pretty desperate.

I defaulted on my loans and they were officially charged off in April 2024. I currently owe $74000 (i know, stupid, 17 year old me made bad decisions)

I just got an offer from a debt collector (Stillman Law) saying that the original creditor (Citizens) is willing to settle for 50% of the debt owed.

My question is - do they usually make payment arrangements for this type of thing? Or would I be expected to pay the whole settlement as a lump sum? I obviously don't have access to $37,000 to just pay it.... but 50% settlement (without me even asking) sounds like it would be a good deal.... now, I live in PA - SOL is only 4 years and they can't garnish wages, so part of me is wondering if i should just let it go

honestly i have no idea what i'm doing and would appreciate any and all feedback

So I defaulted with Sallie Mae in 2022 my grandmother was a cosigner on the loan and she got a letter in the mail saying that this third-party is now handling the loans. I called Sallie Mae today. They said it hasn’t been sold but the third-party is in fact handling it. Anyone have experience with them working with you on a payment plan? The most I can afford a month is probably $500 if that but Sallie Mae was trying to tell me that I had to pay like $2000 a month whichhhhh if I couldn’t afford the minimum payment and got so far behind what makes them think I can afford that I don’t fucking know but OK!!!!!! Anyways, does anyone have experience with NES of Ohio????

Currently in a state that has a 6 year SOL. We’re considering moving to a state with a 3 year SOL. I stopped paying in June 2024.

If we move, spend 3 years in new state, then move back to state with 6 year SOL, they can legally still sue me right? Is it best to just wait out 6 years in the 3 year SOL state in order to move back?

Student Loan Default: The Guide

This link was buried amongst other old posts. It’s a great resource for new individuals and very helpful with FAQ.

Click here for Student Loan Default: The Guide

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Success Stories:

“I’m Free”

“We did it! Over $130,000+ in private student loans hit the Statute of Limitations! FUCK YOU, Navient/SallieMae, we won and YOU lost!”

“[Success Story] Ditched 44K of private debt”

“Check out my post history - making a settlement. Long story short, I defaulted and settled 45% on the dollar for $72000, not much negotiation, no professional help, and come tax season this year I didn’t have to pay on the 1099-C’s because I filed for insolvency. Best thing I ever did for my financial well-being”

—————-

Defaulter AMA:

My wife and I are student loan defaulters who said "ain't gonna ever pay!" and now living life on the run. AMA!

—————-

I plan on make on mega sticky post in the future. If you find other good resources, drop the link in the comment section below👇.

That was sneaky… I paid over $5k interest only on original loan amount of about 30k…. Now it’s over 60k with interest. I have to know apply for loan forgiveness as public service… and continue with at least 9-10 month of payment before they even consider a forgiveness. SMH. Now I can’t buy a house… any suggestions or someone in my situation was still able to buy a house?

I've been reading on here some people that default and get sued and some people that don't. What's that about? Does it have to do with the lender or how much you own/make? The state you're in? Also those that have been sued and gotten a judgment against you, did they compel asset discovery and take bank accounts and personal property? Or was it just for wage garnishment?

Hello all,

So I live in TN and the SOL is about ~6yrs.

I stopped paying about 3 years ago, after I lost my job, and I owe about $90K.

Today, my co-signers (parents) received “pending litigation review” letter. The letter basically states that they are considering a lawsuit and have sent the default loan to their legal department. Letter says there is still time to pay.

The letters are obvious scare tactics. I know this from the fact that the letter sent to my dad sounded slightly harsher than the one sent to my mother.

I remember reading in this sub that this is typical course of action in that they send letters like this in the mail to try and get you to pay.

Now I’ve done ch.13 before and I really don’t want to do another one but I will have to if my co-signers or myself are officially served.

I guess what I’d like to ask is, has anyone else have similar experience from Navient where they received this exact or similar letter?

Since I lost my job three years ago, I’ve worked a job that pays 10% of what I used to make, so I’m unable to pay monthly, but I would also like to weigh all my options that are an alternate to filing bankruptcy again, especially since next year my previous one falls off.

Any advice would be greatly appreciated.

Thanks!

Do I have to respond to this? Sallie Mae transferred my loan to this debt collector company. I never received my license or degree from my school because of school misconduct & their predatory lending services.

Sallie Mae still tried to collect though despite the fact that I told them I never got my license or degree.

& I actually have a permanent disability from being hospitalized due to stress from the school. I ended up with a permanent mental illness from being hospitalized in nursing school. I still see a doctor monthly & suffer beyond what anyone can fathom. I also have ptsd from being bullied by a group of older women.

What should I do? Do I have to respond to this? I also have no assets or anything.

So I have about 60,000 in student loans with Firstmark. I have been religiously making payments since 2018 and the principal amount hasn't budged at all because I could only afford the minimum payment of $450. I recently just had a baby, my partner is in the military and we just moved to a new duty station. So I don't have a job and I really can't bring myself to get a job while my baby is still so young and dependent on me. I don't have any assets, no income, nothing to my name; so I'm at a dead end here. I'm considering defaulting because I'm not about to get a dead end job just to put my child in daycare and use whatever money left over to pay my student loans. I rather have a bad credit score and be there for my child more than anything. I know it sounds reckless but honestly I'm so sick of making payments and never seeing the amount go down, so much money has already gone down the drain. What happens if I default with Firstmark, does anyone have any experience with them? Any advice is appreciated, Thank you!

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Long story short - took out 5 private student loans from 2010-2012. Live in Kentucky where the SoL is 15 years (yikes). Loans were previously owned by Sallie Mae. I quit making payments on these around 2014 I'd say but don't know for sure. Loans were purchased by U.S. Assest Management, Inc in 2020 according to the paperwork. The civil suit was sent by Weltman, Weinberg & Reis (lawfirm debt collection). I have 20 days to answer the suit. I owe roughly $45k (15 from interest).

Was honestly surprised they came after me as I don't make much money and have zero assets. I live with my brother. My AGI the last 7 years (roughly):
2023- $1850

2022- $3800

2021- $14,500 (stimulus unemployment = 10,000)

2020- $28,000 (stimulus unemployment = 19,250)

2019- $12,200

2018- $2100

2017- $2500

I obviously can't afford to pay these back. I am contacting lawyers for consultations to get an idea of my next step but I haven't found anyone that specializes with student loans. Do I just need to contact a bankruptcy lawyer? Should I try the free legal aid services? I would be interested in a lump sum settlement, has anyone had any luck with this? Any advice would be greatly appreciated.

Hello,

Any Americans here who refinanced their private loans while making foreign income?

I live in Europe, no financial ties to the US. Salaries are obviously significant lower than in the US and google isn’t giving any clear answers on how I can refinance with foreign income.

Any advice is greatly appreciated.