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Posted in Student Loans
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Question By
bershoo1

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settle defaulted student loan.
had borrowed 7500 from Lehman Brothers. Defaulted during the collapse. Collection agency is trying to get 10k. Loan has been in default since 2007. Due to drop off my credit next year. thinking of offering to settle at 30%. good or bad idea? any input welcome

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Student Loans do not drop off.

Helpful to 1 out of 2 people

Student loans have no statute of limitations and do not drop off.  They remain collectable until such time as they are paid off, even if that means garnishing Social Security benefits.  During the defaulted period, interest has accrued, making the loan balance higher (you did know you had to pay interest on the loan??)

Best to make payment arrangements and get them paid off.  I tried offer and it didn't work.

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