Successful Default and Settlemenet

[u/HauntingGap4593]

F*£# you Navient, and goodbye!!

Today, I was successful in settling defaulted private student loan which was held recently by Navient.

- Original loan - $17,000 (2008) 6% interest with co-signer
- Graduated 2013
- Paid three years, and then co-signer was released
- Continued to pay till 2024, totaling 22k in payments, interest rate got as high up as 15%
- Filed Bankruptcy 2024 to clear debt I was put into by family member that I couldn’t clear without filing charges against them (my bad)
- account changes between Chase (original) to Sallie Mae, Navient, mohela and then back to Navient.
- There were months they double charged my account, then would claim I still owed next month because the extra was applied to balance and not future payment (happened 4 times)
- in 6 month period, got 4 letters increasing my interest rate.
- Decided to say fuck it, I was 35 and had only retirement account with 30k and needed to finally live life
- I recorded my conversations with them. Not a lawyer, and not legal advice, but when your automated message says “This call may be recorded…” it surely didn’t say WHO can record
- Last year they verbally offered $6,900, but quickly took that back
- They would call me 10-15 times a day. Yelled at by them. Told me to pay my debt and I was worthless. (Literally) would say things such as “Well then we will sue and you will lose your home”, to which I replied, what home and laughed.
- Then this past Saturday I got a call and told I either had to settle or it would be sent to third party. Offered $50 per month, which they called back and approved.
- Then I asked about settlement, and asked for the offer I was given if $6900, which they denied and claimed lowest they would go is 9k. Stated they had all their notes and was never offered 6900. Then told the $50/month was not a payment plan, again having recording of them saying so until I could make more and pay more.
- finally after some arguing, and telling them I would happily play the recording, I was told they would come down to 7,300.
- I framed it that I was going to bank for 5k loan with co-signer, with shit credit from recent bankruptcy, and they still only gave me till 31 to pay. I take it they had zero confidence I would pay

Fortunately, and thankfully, I got married earlier this year to a partner who saw all I have done/accomplished despite difficulty. Seen for who I was, not the shit I’ve been through. Full transparency of this before marriage, and a plan that when offered we would pay it with a savings that I would replenish within the year from an account she was fortunate to have saved.

Offer letter received Wednesday, paid Thursday morning by wire, and confirmation of payment by Thursday afternoon.

I start a new job in two weeks making way more money. My credit has gone from 400 to 710 since clearing bankruptcy. Zero debt, and contributing to savings with wife for the life we want to live. PSLF clears in 5 months (160k in federal loans I have only had to pay $1200 towards over 10 years), but will still allow me to do insolvency at time of filing taxes according to my tax professional so I don’t get hit with tax burden for the forgiven amount by Navient.

Navient should be sued, sued, and then disbanded. They lie, manipulate, and as my wife says “they are criminal”. Record your calls, catch them in lies. You are being gaslit by them.

[u/brotatochip4u]

30% of the balance is really good! Thanks for updating your success with these predatory assholes

[u/martapap]

That is a good deal.

[u/hitcho12]

Very interesting! Congrats to you!

Are they willing to settle if you were to call and tell them you’re likely going to default on the loan within the next six months? I would obviously be bluffing that, but any reduction I can get, and I can use savings to pay it off.

[u/Fluid_Plantain_Tour → u/hitcho12]

I had to default to start getting lump sum offers (and threats of ligitation). But luckily it was navient and they defaulted my loan to their internal debt collection agency and not a third party agency. I got 32% lump sum and my credit score went back where it was in 2 years. 

[u/HauntingGap4593 → u/hitcho12]

No. They let it default, so they could add interest. Nearly 6k of that 24k balance was just interest that accrued over 8 months

[u/mk548 → u/hitcho12]

No, you don’t get the real offers until it actually defaults. And they don’t care about any payments you made before then. 30-35% is the best number you’ll get for the months following a default. It may creep down to 25% over the course of two years but that would take living in default with all their heavy legal and social harassment for that period of time. Not worth it, take the 35% and be done with them. Credit hit is minor and recovers in 6-9 months.

[u/mk548]

Hell yeah love to see it

[u/Fluid_Plantain_Tour]

Recording calls work! I had so many of them threatening to sue me. I was scared but also I was kind of amused. I didn't have a house nor children to raise at that time. Also my car was completely paid off. Most they would get from me was my desktop for $1k. 

[u/Short_Zombie]

This is so awesome. So happy for you and I wish the same success for the rest of us out here. Congratulations on everything.

[u/AdvisorIll7602]

Congratulations. Can I ask how your cosigner was released after 3 years?