The Student Loan Debt Forum | The College Investor

Student Loans => Navigating Repayment => Topic started by: RepaymentMan on July 08, 2019, 07:23:56 pm

Title: Is Settling with a Collections Agency A Good Idea?
Post by: RepaymentMan on July 08, 2019, 07:23:56 pm
I have $20,000 of very old Federal Student Loans that have long aged off of my credit report, but are being garnished from my wages. A Collections agency is constantly contacting me regarding the loans and I want to get rid of this problem, but fear taking the rehabilitation route as I think my payments would be too high due to my high income last year. Therefore, I'm wondering if offering to settle for a lower amount and payment in full is a doable and smart move.

Is it common for Collections Agencies to enter a settlement agreement on defaulted Federal Student Loans? If so, what can I expect and would entering such a settlement be a good idea? Would my credit remain unharmed? Or would a settlement put a new negative ding on my report?

Any help is greatly appreciated!
Title: Re: Is Settling with a Collections Agency A Good Idea?
Post by: TheCollegeInvestor on July 10, 2019, 10:03:31 am
See my other response. Your options for settling Federal debt are very limited. If you can settle, make sure it also includes removing the default.