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Sallie Mae charge off


OkieinNY
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Hello there,

I have really learned so much from these forums in the last year. I don't post much, because I usually try to find the answers in older posts.

Anyway, I received a letter from Accounts Receivable Management for a Sallie Mae loan from 2001 ($6600). After reading the forum today, I fgured I better not mess around, and I called ARM. They referred me to Sallie Mae, who, of course, said there was nothing they could do. I called ARM, and they offered to settle for 60%, with the balance paid in full in 4 months. I've learned enough here to know that I shouldn't just lie down and take whatever they offer, but the rep started talking about SM recalling the loan, wage garnishment, etc... SM shows "charge off" BTW. What are the chances SM would recall the loan? Should I negotiate for less than 60% and just pay ARM? How do I know that they won't sell the balance to someone else? What will paying do to my credit report? Any help would be so much appreciated...I'm feeling a bit out of my league!

Thank you!!

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I am assuming this is a private student loan. Sallie Mae will never sell the debt.....they may place it with another CA but student loans are never sold. Claims are filed with guarantors in most cases.

Private student loans do sue as a regular course of business. 60% settlement is a good deal....I would recommend grabbing it while the offer is on the table.

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Thank you so much for your reply! I have since found out that it is a private loan. I have made an agreement with ARM for payments, however, NOW they are refusing to fax me something outlining the terms we agreed to. One manager even hung on me when I said that I would like them to send me something before I send the payment I agreed to make today. What now?

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Nope...you will not ever get one either. Why? You have a promissory note where you agreed to pay in full on demand. Nobody is going to put anything in writting that changes the terms of that contract. Too many people have abused that privelege in the past.....gotten the letter, purchased that home or car they were after and disappeared again. Guarantors clamped down on payment agreement letters years ago.

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