Anyone Sucessfully Negotiated Down a Student Loan?

[markseven]

Before anyone gets upset, an FYI that I have paid all of my previous loans in full and I am current on this set of loans.

I want to see if Sallie Mae will reduce the interest owed if I write a check for the total principle...

Any success story's, strategies, advice is appreciated ;)

[robo_trigger]

I have a friend who negotiated 100k down to one 57k payment. But it had to be made in full. Also BEWARE, loan forgiveness is considered income on your tax return. His 43k "windfall profit" was taxed to the tune of some obscene amount of money.

[Farbin Kaiber]

^Whata fuckin racket. These are the types of things that happen when the .gov gets its nose into everything.

[markseven]

I have a friend who negotiated 100k down to one 57k payment. But it had to be made in full. Also BEWARE, loan forgiveness is considered income on your tax return. His 43k "windfall profit" was taxed to the tune of some obscene amount of money.

Thanks man. I will keep in mind the long arm of the IRS.

^Whata fuckin racket. These are the types of things that happen when the .gov gets its nose into everything.

This is probably the tip of the iceberg...

[mrsleeve]

was going to say have fun with that 1099C your going to get, its going to get treated like regualr income when it comes tax time next year and if its a large amount its going to sting like a bitch, so better figure on having about 25% of what ever they write off of your bill in cash this time next year to pay uncle sam

[markseven]

was going to say have fun with that 1099C your going to get, its going to get treated like regualr income when it comes tax time next year and if its a large amount its going to sting like a bitch, so better figure on having about 25% of what ever they write off of your bill in cash this time next year to pay uncle sam

Paying 25% of what would otherwise be 100% seems okay to me :p

[Threehz]

I'll have to try this, my loans should be less than 10k when I'm out, but any reduction will be a blessing.

[homegrone30]

Keep us updated. I also have a loan with sallie mae and have been thinking about this recently as well.

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[mrsleeve]

I'll have to try this, my loans should be less than 10k when I'm out, but any reduction will be a blessing.

PAY BACK YOUR OBLIGATIONS YOU SIGNED THEM NOW MAN UP AND PAY THEM!!!!!!!!

Ahhh I am fairly sure you have to demonstrate some kind of sevear hardship to warrant consideration for such action. Not just I graduated and I dont make a lot of money and life is expensive can I not pay you back as much as I borrowed from you. Fuck 10k is not bad at all, you should be able to pay that back in less than 2 years, if not a year.

[Threehz]

I'll just tell them I own an E30, they'll understand.

In all honesty, I'm happy I'll be getting away so cleanly. I know many people who are spending insane amounts of money on schooling..

[vert_this]

Paying 25% of what would otherwise be 100% seems okay to me :p

yeah but what you seem to not understand is if you settle for say 50% of what you owe you give them that all at once, they then send you a 1099 for the other 50 they wrote off and u pay tax on that which could be 25% but more like 33%. So do the math again and see if its such a good deal. I guess it only seems nice if you have a huge stack of hundreds waiting to hand out which I doubt otherwise you wouldn't be to concerned with shaving what you owe now.

[CrusherCurtis]

I'll have to try this, my loans should be less than 10k when I'm out, but any reduction will be a blessing.

Yeah you probably can't do it right out or everyone would. Don'y pay it for like 10 years and then give it a try.

[markseven]

yeah but what you seem to not understand is if you settle for say 50% of what you owe you give them that all at once, they then send you a 1099 for the other 50 they wrote off and u pay tax on that which could be 25% but more like 33%. So do the math again and see if its such a good deal. I guess it only seems nice if you have a huge stack of hundreds waiting to hand out which I doubt otherwise you wouldn't be to concerned with shaving what you owe now.

You realize I am talking interest, not principle, right?

[vert_this]

You realize I am talking interest, not principle, right?

Your right I didn't realize that...then not likely they will simply tell you, you want a reduction in the rate refinance it. Let us all know if your successful at that though. If they agree to that they wouldn't send you a 1099 due to the reduction.

[long tall eta]

a guy in work just got nabbed by a colection agency for a student loan from 20 years ago. they want 106,000 and wont talk deal for 9 months paying 600 a month. i would like to know how much they paid the government for the note. maybe 10,000 or less.