I'm worried I might be getting scammed. I recently defaulted on my private student loan with naviant. I haven't made a payment in 3 months because I can't afford the payment they are requesting. They refuse to lower my payment anymore so I haven't been paying. I was contacted by a company called beling and associates. They are telling me they can fight my loan based on the fact that I was given false repayment expectation when I originally received the loan. They have asked me to pay $250 a month while they fight the loan, which they say will take 1-2 years. They have told me that at the end of everything they will either completely forgive my loan or cut it by 60%. Does this seem legit?
Also, if it does sound like a scam, what other options do I have? I would like to refinance the loan but my credit is terrible. The original loan was for $25,000 at 8.5% interest. Now 8 years later, the loan has doubled. I owe close to $48,000. At the end of the repayment plan, I will have paid $98,000 for my $25,000 loan. This doesn't seem right to me at all. How can I fix this?
Be very careful in working with any law firm. Make sure that you ask them exactly what steps they are going to take in fighting this.
A lot of people get burned dealing with law firms trying to get their student loan debt dismissed.
Make sure they don't ever:
1. Ask you to stop making payments
2. Ask you to make payments to them
Both of these are big red flags that they are NOT trying to help you.
Most people don't ever need a student loan lawyer unless you're struggling to get out of default, or you are being sued by your private lender. A lender asking for a payment is not being sued - I'm talking about a real lawsuit.
If neither of these apply, all good lawyer will:
1. Validate that the debts are legitimate (which you likely know to be the case)
2. Validate that they haven't violated any debt collection laws (which you could sue them for violating)
If you really want to go the lawyer route, ask to pay them per work completed. So, pay them for a demand letter or negotiation, not make monthly loan payments to them.
In reality, you can work with Navient, but I would do it in writing, explain your situation, provide proof of income, and honestly show them what you'd like to do to pay off the loan. For example, make an offer of a payment and terms that you can afford, and do it in writing.
Hi i am in a very similar situation. I am now in default on my student loans because i stopped making payments to Navient, and only to the firm that is supposed to be settling my loans. My credit score has definitely been impacted by this.
The firm is National Legal Staffing Support LLC
Is this a fraud? If so how do I get out?
I'd be very concerned because you should never stop making payments to your lender. You need to contact Navient and maybe your State Attorney General and share your experience with them. Then work with your lender to get your loans back on track.