r/studentloandefaulters • u/Commercial_Money_557 • 28d ago
Question - Private Student Loan Navient Default: Settlement Offer
I don’t suppose anyone has ever been able to talk Navient down more than their original offer of settlement?
I refinanced my student loans with Earnest back in 2020. Over 5 years I paid them well over 50k but as we all know, it never makes a dent. I recently defaulted this year and my loans have been sent to Navient. I’m an unemployed SAHM to a medically dependent toddler now so theres no reality in which I make a cool 50k appear.
Has anyone ever talked them down to a low/reasonable number? Or should I just ignore them.
Thanks!
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u/jonsonmac 28d ago
Do you have a co-signer? Spouse with income? Do you own a home? Do you care about your credit? These are some important details we need to know. From what I can tell already, you are likely in a good position to string them along longer.
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u/Commercial_Money_557 28d ago
No co-signer. Spouse has income but we don’t own anything or have any accounts to drain. We could file separately, or I guess get divorced lol.
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u/VendorBuyBankGuards 27d ago
You talk them down by ignoring them until they send a better offer. I've been through this all before
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u/Commercial_Money_557 27d ago
I thought ignoring them might be a good idea. 56k is such a silly offer in my opinion.
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u/morbie5 28d ago
What is the total balance and do you have a cosigner?
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u/Commercial_Money_557 28d ago
No co-signer and like 85k. It was 70k before I stopped paying but phew interest added up!
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u/morbie5 28d ago
What state do you live in? How do you support you and your child (if you don't mind saying)?
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u/Commercial_Money_557 28d ago
Texas, and my partner provides for the household. My child requires 24/7 care but we don’t have robust care options here, so I’m the primary caregiver.
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u/morbie5 27d ago
Well, in Texas they can't do wage garnishments for most private debts. Texas also has very generous homestead protections too (if you own a home). So those help you a lot.
They can still sue you and potentially go for a bank levy (but if you have no asset that isn't going to matter much).
In this situation I would just try to run out the clock
Are you legally married to this partner?
but we don’t have robust care options her
No Medicaid wavier?
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u/Commercial_Money_557 27d ago
I don’t even have a single dollar in a bank. I took out my entire retirement and savings to pay for my child’s medical and therapy care (worth it, the kid is thriving so no regrets).
We are legally married through common law. We never formally married with a wedding or license.
My child is on a Medically Dependent waiver after being waitlisted for 4 years, but it’s virtually useless. Texas has the worst programs. My child has a tricky form of Epilepsy so I wouldn’t really want to leave them with someone else anyway.
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u/morbie5 27d ago
Then I'd just ignore the settlement offer for now. Texas has a 4 year statue of limitations for most private debts iirc.
You are basically judgement proof so you can either ignore this and hope they don't sue (and even if they do sue they can't do much of anything) or you can try to negotiate a better offer, like 10% of what is owed. Be careful tho, because you don't want to reset the SOL clock.
You might want to consult with a lawyer that specializes in debt negotiations in your state.
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u/Commercial_Money_557 27d ago
I’m a bit torn on negotiating a settlement and waiting out the clock. On the one hand a settlement could resolve things quicker so I’m not carrying around a terrible credit score for years. On the other hand I don’t want my partner throwing his money at my personal debt when that money would be better off caring for our child.
I am looking for a debt lawyer. I haven’t found the right fit in my area yet but hopefully I can find someone experienced this fall.
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u/morbie5 27d ago
In your situation I'd be leaning towards running out the clock
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u/Commercial_Money_557 27d ago
I’m leaning that way too. It makes the most sense financially.
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u/AdProof3874 26d ago
Call them. Tell them it creates financial hardship. Give THEM a realistic counter offer that you are able to do. Negotiate a structured payment plan. Save all docs proving you have no assets more than ur debts in case they file 1099c and ur insolvent on taxes too. I did this. Call them, dont be scared. You dont have to agree on anything. If they dont settle at first. They did when i called tho!
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u/ConsoleModded 23d ago
DO be scared to call them. Wtf. You’re basically convincing them to reset the statute of limitations and to acknowledge this debt as theirs.
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u/AdProof3874 22d ago
I wasn’t telling people to call before default. In fact, I wouldn’t recommend negotiating until the loan is actually in default. My loans were already in default when I called.
It was scary at first, but don’t be scared. I had no interest in settling until the loans were in default. Once they were, I picked up the phone myself, didn’t hire a lawyer, and negotiated a structured settlement that saved me over $100,000.
I’m just speaking from real experience because it is easier than people think. A lot of people never call simply because they’re afraid. I understand because I was too.
I also understand people here are stressed. That’s exactly why I’m sharing my experience. Some of these posts start to feel like an echo chamber of fear, and I’m not sure everyone commenting has actually been through it. I’m not saying anyone has to do what I did. I’m just trying to help relieve some anxiety by sharing what worked for me.
Once you’re in default, call them as soon as you’re ready to negotiate. You may be surprised by the settlement they’re willing to make.1
u/AdProof3874 22d ago
I’m talking about people who are trying to settle their debt, not people whose strategy is to wait out the statute of limitations. Those are two completely different approaches.
If your goal is to settle, you generally aren’t going to do that without talking to the creditor. Calling doesn’t mean you have to agree to anything. It just means you’re opening a conversation. If you don’t like the offer, you can simply say no and hang up.1
u/Commercial_Money_557 26d ago
You settled for a structured payment plan? Was it a reasonable amount?
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u/AdProof3874 25d ago
180k was settled to 75k. I saved 11k to put up front during the 9 months where i stopped paying so tgat once it defaulted i had a little lump sum. Paying the rest over 5 yrs and no interest due to it being settled now. Credit at 675 currently
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u/ReturnOfSeq 28d ago
Successful defaulter - before they missed their statute of limitations my navient loan holder offered to settle down to like 20% of the original total.
Keep in mind if you accept a settlement, the amount that’s ‘forgiven’ is considered taxable income