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Posted in Student Loans
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StefnThursty

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Should I believe my debt collector wants to settle for 10% of my actual debt?
I had a private student loan from a bank that went into collections. I finally found employment in my field, but am still underemployed/underpaid. I entered into a payment plan with the collections agency for $350 a month for three months. The original student loan was for 35,000. The three month period is up and when I called the agency rep to discuss my options, she asked if I wanted to make $587 monthly payments for the next 6 months, totaling in a $3,522 settlement. This would be an incredible offer and I would be an absolute fool to not take it...if it was for real. Does this actually happen? I feel like they are taking a ridiculous hit and this offer is way too good to be true. Should I be wary? Are they just going to come back and ask for another payment period with higher and higher payments? Please help.

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Ask them to please send that agreement in writing so that all terms and conditions are there for you to understand.  If they do so and the offer is as they told you, go for it!!  Make sure you have a copy of the agreement for your records.  It is not wise to make deals ovewr the phone.  Always "Get it in writing.".

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