Has anyone had any success on settling defaulted student loans? I have loans from the late 80's with total principal balances just under $6k. With late fees, interest and CA charges the balance is now $13k. I have read here a couple of years ago of people settling w/the dept of ed and skirting the CA but I cannot seem to find the related posts. The CA (MAXIMUS) has been looking for me for years and finally found me. The only hint of student loans on my credit report is the CA inquiry. Other than that my credit has almost returned to stellar status. However, I'm not rich. Ideally I would like to settle the loans directly with the dept of ed at the principal amount and just slap it on my credit card (& hopefully get the mileage) and then transfer it to another cc at 5% interest. I don't want to rehabilitate the loans and have the derogs or CA acct go on my credit report even for the 12 months. That would tarnish my current credit relationships and interest rates. However, like I said I am not rich. I cannot (or more likely) will not pay much more than the principal. My tax returns are seized every year (which I keep at a minimum) and to garnish my current pay at 10% would take them a lifetime to even get the $6k. Do I stand a chance in hell? If so who and where should I contact? Anyone have any related situation? Thanks
Good luck. Student loans are an animal all of their own and they have little incentive to settle with you when they can just obtain a judgment and then attach it to any property you ever acquire or garnish your wages.
