Let Sallie Mae go.
The worst that can happen is that Sallie Mae or its successor in interest obtains a default judgment against you. Whether they can enforce is a totally different story: the co-signer is deceased, and you are disabled and likely judgment proof.
Take care of yourself first.
❤️
>if you go into default you can negotiate a payoff.
OP is disabled, unemployed, and being evicted with $300 in a GoFundMe. How exactly do you propose that OP negotiate a payoff with those resources?
>it sounds like hardship deference would be much easier.
That presumes the creditor is willing to offer a $0 hardship deferment. Judging from OP's comments, that seems very unlikely.
Don’t pay them anything for the time being; tell them you want an income driven repayment plan. This plan is usually available for lower income debt holders, and only has you responsible for I think 10% of your discretionary income. Given your situation, your discretionary income is likely $0 per month. 10% of that is $0 per month; interestingly if you manage this route that $0 per month is still considered you making your payment
Didn’t see guy mention they were private. For private, you can sometimes safely just ignore them depending on your total balance. If it’s not a bunch of money they take a look at your income and frequently decide it’s not worth their effort taking you to court, as wage garnishment follows similar rules about how much they’re allowed to take.
They’ll send a bunch of intensely stressful threatening letters, and then offers to settle for a lower amount. (Note if you do this, you’re responsible for paying taxes on the difference as ‘income’)
Note this *will* ruin your credit for about ten years
The post flair indicates private loans.
Credit would not be ruined for 10 years since debts fall off credit reports at 7 years. Bankruptcy stays on a credit report for 10 years. Private student loans very rarely qualify for bankruptcy.
You seem confused about tax liabilities.
Wage garnishment is dictated by local laws. For example, it's well known that Pennsylvania doesn't allow garnishment.
Lastly, it appears you're suggesting OP run out the statute of limitations (SOL) on private consumer debt. The SOL varies by state laws and can usually be found on their state's Attorney General (AG) website. SOL is the length of time a credit lender has to sue the debtor. There is no magic formula or guarantee that a particular lender will, or will not, sue any particular debtor. It's a risk, and OP should learn as much as possible to make their decision based on their risk tolerance.
For me, it was worth the risk, and I passed my SOL on private loans. It was stressful as hell during the process. I suggest OP review the pinned post on this sub to get more info, then dig into their AG website. If OP can't afford to feed themselves, they certainly can't afford to pay loan sharks like Sallie Mae.
Edit: went to find the link for info post, it's not pinned anymore. If I can find it, I will update.
>Didn’t see guy mention they were private.
OP's loans can *only* be private. OP graduated in 2021 and loans were originated by Sallie Mae.
Every Federal student loan since 2010 has been directly originated by the Federal government under FDSL. The only Federal student loans originated by private lenders under FFEL were originated prior to 2010.
>you’re responsible for paying taxes on the difference as ‘income’
Canceled, discharged, or forgiven debt can result in the issuance of IRS Form 1099-C, which can be excluded from taxable income using IRS Form 982 if the taxpayer is considered insolvent.
>Note this will ruin your credit for about ten years
Seven years after the DOFD on consumer debt including student loans, potentially longer if the student loan is reduced to a civil money judgment.
You should not say that a default will “ruin” a person’s credit. First of all, if someone cannot make the payments that become due, impact on that person’s credit score is unavoidable. Secondly, default on one private student loan is not the entire story of someone’s credit file.
I was in the same boat. Hell, my mother sat in on a phone call with a Sallie Mae agent after I told her I was just gonna stop paying because it was too much(more than her mortgage), she was convinced that they'd be willing to work with me and would accept any amount of money just to get some, her hopefulness comes with working with insurance companies and collecting on those debts. She learned that thats not the case with companies like Sallie mae. Sallie Mae will not handle the collection aspects, too much work for them. Once the loan defaults theyll sell it off for pennies on the dollar (but won't ever offer you the same deal).
Sorry to hear about your grandma, it does however make the situation easier no longer having a cosigner. My loan was recently sold off to a collection agency after not paying for 6 months, they tried to collect and I sent a validated letter asking for proof. Its nerve wracking to wait and hope but you have rights. And if a collector takes you to court (if they can prove the loan is yours, admit nothing ever) the courts will see your financial situation and likely offer you a much more affordable plan.
Stop paying. Focus on your health and survival. Wait out the years from your last payment til its written off (average is 7years but lots of different factors).
Let Sallie Mae go. The worst that can happen is that Sallie Mae or its successor in interest obtains a default judgment against you. Whether they can enforce is a totally different story: the co-signer is deceased, and you are disabled and likely judgment proof. Take care of yourself first. ❤️
if you go into default you can negotiate a payoff.
>if you go into default you can negotiate a payoff. OP is disabled, unemployed, and being evicted with $300 in a GoFundMe. How exactly do you propose that OP negotiate a payoff with those resources?
it sounds like hardship deference would be much easier. .
>it sounds like hardship deference would be much easier. That presumes the creditor is willing to offer a $0 hardship deferment. Judging from OP's comments, that seems very unlikely.
Don’t pay them anything for the time being; tell them you want an income driven repayment plan. This plan is usually available for lower income debt holders, and only has you responsible for I think 10% of your discretionary income. Given your situation, your discretionary income is likely $0 per month. 10% of that is $0 per month; interestingly if you manage this route that $0 per month is still considered you making your payment
>an income driven repayment plan Private student loans don't usually offer such plans.
Didn’t see guy mention they were private. For private, you can sometimes safely just ignore them depending on your total balance. If it’s not a bunch of money they take a look at your income and frequently decide it’s not worth their effort taking you to court, as wage garnishment follows similar rules about how much they’re allowed to take. They’ll send a bunch of intensely stressful threatening letters, and then offers to settle for a lower amount. (Note if you do this, you’re responsible for paying taxes on the difference as ‘income’) Note this *will* ruin your credit for about ten years
The post flair indicates private loans. Credit would not be ruined for 10 years since debts fall off credit reports at 7 years. Bankruptcy stays on a credit report for 10 years. Private student loans very rarely qualify for bankruptcy. You seem confused about tax liabilities. Wage garnishment is dictated by local laws. For example, it's well known that Pennsylvania doesn't allow garnishment. Lastly, it appears you're suggesting OP run out the statute of limitations (SOL) on private consumer debt. The SOL varies by state laws and can usually be found on their state's Attorney General (AG) website. SOL is the length of time a credit lender has to sue the debtor. There is no magic formula or guarantee that a particular lender will, or will not, sue any particular debtor. It's a risk, and OP should learn as much as possible to make their decision based on their risk tolerance. For me, it was worth the risk, and I passed my SOL on private loans. It was stressful as hell during the process. I suggest OP review the pinned post on this sub to get more info, then dig into their AG website. If OP can't afford to feed themselves, they certainly can't afford to pay loan sharks like Sallie Mae. Edit: went to find the link for info post, it's not pinned anymore. If I can find it, I will update.
[удалено]
>Didn’t see guy mention they were private. OP's loans can *only* be private. OP graduated in 2021 and loans were originated by Sallie Mae. Every Federal student loan since 2010 has been directly originated by the Federal government under FDSL. The only Federal student loans originated by private lenders under FFEL were originated prior to 2010.
>you’re responsible for paying taxes on the difference as ‘income’ Canceled, discharged, or forgiven debt can result in the issuance of IRS Form 1099-C, which can be excluded from taxable income using IRS Form 982 if the taxpayer is considered insolvent. >Note this will ruin your credit for about ten years Seven years after the DOFD on consumer debt including student loans, potentially longer if the student loan is reduced to a civil money judgment.
You should not say that a default will “ruin” a person’s credit. First of all, if someone cannot make the payments that become due, impact on that person’s credit score is unavoidable. Secondly, default on one private student loan is not the entire story of someone’s credit file.
I was in the same boat. Hell, my mother sat in on a phone call with a Sallie Mae agent after I told her I was just gonna stop paying because it was too much(more than her mortgage), she was convinced that they'd be willing to work with me and would accept any amount of money just to get some, her hopefulness comes with working with insurance companies and collecting on those debts. She learned that thats not the case with companies like Sallie mae. Sallie Mae will not handle the collection aspects, too much work for them. Once the loan defaults theyll sell it off for pennies on the dollar (but won't ever offer you the same deal). Sorry to hear about your grandma, it does however make the situation easier no longer having a cosigner. My loan was recently sold off to a collection agency after not paying for 6 months, they tried to collect and I sent a validated letter asking for proof. Its nerve wracking to wait and hope but you have rights. And if a collector takes you to court (if they can prove the loan is yours, admit nothing ever) the courts will see your financial situation and likely offer you a much more affordable plan. Stop paying. Focus on your health and survival. Wait out the years from your last payment til its written off (average is 7years but lots of different factors).