papillon380
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I'm just wondering if anyone knows anything about settling private student loans or who would be best to talk to? It's a reallllly long story, but basically I have an insane amount of private loans through Sallie Mae for a useless education through a for profit private college.

My loans were initially about $96k from 2003-2006. Now with accrued interest they sit at just below $180k. We simply cannot afford these loans. According to zillow we have around $115k in equity on our house. So I was thinking of getting a second mortgage for that $115k then using that to settle with Sallie Mae.

But I don't know where to start. Do I speak with an attorney? What kind of attorney? Or do I speak with my mortgage lender or broker (we have a broker who did our original mortgage and our refinance who is amazing)? Do I start by calling Sallie Mae to see if there is any way they would settle? I have a feeling I wouldn't get far doing that. Do we start with an appraisal of the house to see if it's actually worth that much? Or is it pretty much a hopeless dead end idea like everything else I've tried?

Just looking for some info if anyone has any. FWIW besides those loans and about $20k in federal student loans, our only debts are the house and the car.




Is your loan in default?? If so you will need to work with the collection agency who is handling the account. You do not need an attorney. Personally I would recommend find out first IF you can get the equity loan (cause if your loan is in default you will probably be denied or your interest will be sky high) If you can get it, make an offer to the CA. Keep in mind you are going to take a major hit at tax time....the waived portion of the loan is taxable income and you will receive a 1099.

Sub: #1 posted on Fri, 02/07/2014 - 06:13

SOAPLADY SOAPLADY
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No the loan isn't in default. Good point on the tax part, hadn't considered that before. We refinanced the house a year ago and got a great rate, and last I checked both myself and my DH had great credit scores. Though I know that doesn't guarantee anything. Now I'm wondering if you've ever heard of Sallie Mae settling on private student loans. It seems that there is pretty much no chance of settling on federal loans, but I haven't had much luck finding info on that with private.

Sub: #2 posted on Fri, 02/07/2014 - 10:19

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