Private Student Loan Defaulted. Now what?

[jomg323]

Hi there,

Went through the posts and could not find the answer I am looking for.

40k student loan debt.

My private student loan defaulted a little over 2 years ago. I understand this is under statue of limitations and wells fargo has 2 more years to sue me.

My question is, does anyone know from experience, or have an opinion on 1. Will they sue me? 2. How much time do I have until they sue me?

I've run out of all options but I MAY be able to settle for 20k, but that will not be for another year.

Any other info or opinions on what I should do / expect would be great!!

Thank you.

 

[TigerD]

Without question, Wells Fargo will sue you.
$20k in a year will not get you in the door negotiation wise.

Read the sticky on negotiating.

DC

 

[jomg323]

Without question, Wells Fargo will sue you.
$20k in a year will not get you in the door negotiation wise.

Read the sticky on negotiating.

DC

1. they offered 50% settlement, therefore 20k is sufficient (upfront). So sounds to me, 50% settlement is a good deal? (I was going to try to negotiate 30-40%)
2. Good to know they WILL sue me. but my 2nd question was, how long do I have until they carry out the lawsuit?

Thanks!

 

[JosephPrice]

If you cannot repay your student loan you have to be in touch with your loan service to get a loan deferment or forbearance. As you missed repayment of your loan you are delinquent, but you have not paid your loan for two years you are defaulted. Your entire bank loan is due. It can be reported to a credit collection agency, Being taken to court, Not getting an income tax refund. You have to know that most student loans are not discharged or canceled under bankruptcy.

 

[CreditCounselor]

Accounts typically go from original creditor > collection agency > collection law firm in your state. When it's with a collection law firm in your state and they send notices that they intend to sue, you should probably start looking for legal advice (if not before that). You can still settle with attorney collection agents in your state, even though they have more leverage than a national collection agency because they can file suit. Forbearance and deferment aren't available for most private loans, they have much fewer options. I have settled private loans for clients from between 34%-55% of the original balance, so it is possible, but it really depends on the lender and other variables.

1. they offered 50% settlement, therefore 20k is sufficient (upfront). So sounds to me, 50% settlement is a good deal? (I was going to try to negotiate 30-40%)
2. Good to know they WILL sue me. but my 2nd question was, how long do I have until they carry out the lawsuit?

Thanks!

 

[quincy]

Credit Counselor, please note the dates of the threads you are posting to.

This is July, 2014. You have been posting to 2012 threads up through threads from May of this year. Your postings will not help the original posters, who are often no longer visiting the forum or who have already resolved their legal issues. Your postings replace on the forum board those threads by posters who are dealing with current concerns.

Please be considerate and respect the new posters who are seeking assistance. Thank you.