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Thinking about just stop paying my Private Student Loans


Ohoopee
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Almost nine years ago, I immigrated from the United States to Europe.   I have always tried to do the right thing.  I am on income based repayment with my Federal Loans and I have two Private loans...one my mother co-signed with me...I hope to get it refinanced over here next year and get my mother completely removed from it...then I have a Private Student loan with Sallie Mae/Navient.  My payments have been well over $500 a month...I have never been able to even come close to paying the minimum.  I got advise from a so called Expert who advised me to make payments in what ever amount I could...that as long as I was paying something, the likely hood of them suing was slim.  Just last week, I got granted Citizenship in the European County that I have been residing in and so of course and at the point where I never have to return to the United States unless I want too.  I am thinking just stop paying Navient and here's why.  Firstly, my credit in the US is already shot, I just looked at my credit reports and Wow...they are bad.  My Balance has kept going up as well as my minimum payment, at the moment I would have to pay over $16,000 to bring my account back currant.  And thirdly, it appears that Navient is no longer satisfied with what I have been doing as I have gotten a few emails from one of their debt collectors trying to get me to pay. 

 

I have already started over here in Europe, the bad marks do not appear on my Credit score over here.  I recently got a small loan from a bank just to build credit in preparation for the refinancing of my other Private Loan that my mother co-signed with me... I hope to do this next year. 

 

So my question is this...what are the repercussions that could effect me here in Europe?  I have been told that the Statute of Limitations might not apply to me because I do not reside in the United States...still if I never move back to the US...will that matter?  Also, at the time I left the US, my Private Student loan was not actually delinquant because I was using my forbearances...which soon ran out.  So my loan did not become delinquant until I had resided in Europe already a year or two..will that matter?  I just feel like all I am doing is keeping them from suing, that the amount I owe just keeps going up and they are fairly unwilling to work with me at least in terms of it being helpful and doable for me.  And since I am in Europe...can they even sue me anyway?  I would appreciate any incite.  I want to know exactly what I am in for before I decide to do this.

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Since you are in Europe, they will not be able to sue you without going through a ton of trouble. However, the SOL is tolled which means if you ever return to the USA for more than an visit (more than an couple of weeks), they can sue you if they can find you.

The biggest issue you might have is with the refinance. Creditors are not as willing to refinance with you not paying on another loan. Especially to remove a cosigner that they can turn to is you decide to not pay (which they will see on your credit report).

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Well I don't think the refinance will be an issue.  As I stated, none of my American loans or student loans appear on my European Credit report.  I have already gotten one small loan from a bank just to build my credit over here and I also have financed  a few more things over here with various companies without having nay problems, my main problem over here is that I have a lack of credit.   

 

One thing as well is that I have never bothered to keep my mailing address and phone number updated with Navient so while they do know what country I live in, they don't have my current address or phone number, nor do they even have the correct town that I currently live in. 

 

Will the Statute of Limitations not apply to me since I don't live in the US?  If I return to the US say 20 years from now, will they will be able to sue me?  I do have an American Bank account still but I don't keep much money in it, I transfer money to it once a month to pay my various student loans..that is all I use it for so even if they did go after the bank account, all it would be is a slight aggrivation and they wouldn't get much money.  It just seems like I am in a situation now that I am never going to be able to get caught up and I am wondering if just stop paying is my only option.

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If you move back to the USA, they can sue you. If you simply visit the USA for a couple of weeks, they would not have time to find out you were here. They can try to sue you at your last known address so go to the court website about once a month and keep a watch to see if they try sewer service or alternative service. They cannot take your bank account without a judgement since it is a private student loan.

The not paying would show up on your USA credit report. It might cause an issue with the refinance though because I think they will still want to have a cosigner because of that.

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If you move back to the USA, they can sue you. If you simply visit the USA for a couple of weeks, they would not have time to find out you were here. They can try to sue you at your last known address so go to the court website about once a month and keep a watch to see if they try sewer service or alternative service. They cannot take your bank account without a judgement since it is a private student loan.

The not paying would show up on your USA credit report. It might cause an issue with the refinance though because I think they will still want to have a cosigner because of that.

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Well I am fairly happy here so I don't7 have any plans to move back to the States... I do usually take long trips there...usually about a month in length to visit my mother once per year but I don't plan to stay...so I don't think they would be enforce a judgement on me anyway since I am not resident in the country...unless they got a judgement here though which from what I have heard sounds very unlikely...I owe them around 60,000...might be a little more now since I have not been able to make minimum payments since 2007...so I am not sure if they would go through the trouble for that amount or not.    It's a hard decision for me...it doesn't seem like the right thing to do..and I am hesitant.  But Navient is going to look out for their own interests not mine...they don't care if I am paying them for the rest of my life..I do.    My amount owned keeps going up because I can't afford minimum payments...so I have to look out for my interests and to be honest, this seems like the only thing I can do.

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  • 6 months later...
Guest DebtPlow

One thing to also consider is if the collectors have your mother's information, they could start harassing her to get your information. I know this isn't always the case, but I've heard stories about ruthless debt collectors calling up family members.

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