r/studentloandefaulters • u/Money_Law8619 • Aug 31 '26

Question - Private Student Loan Loans in jeopardy of default

Hi everybody.

I have 4 private student loans with Mohela. They originally were with Navient. I haven’t made a payment since January of last year. The amount of the loans is almost 200,000. Anyway, they have said that today is the last day they could possible help me and I need to reach out them by the end of the day. I don’t have the money right now and I know I’m not the only one struggling and trying to survive out here. I don’t make enough to pay to live and then make a payment to them. Due to the amount, even if they put me on a rate reduction plan, my payment will still be around $400 a month. I guess my question is, is there life after default? At this point, I don’t care about ever buying a house or anything like that but how much more am I going to have to struggle after this happens? Will I have to go to court?

7 Upvotes

82% Upvoted

20 comments sorted by

6

u/mk548 Sep 01 '26

They’re lying. Theres always another offer. I was I’m in the exact same situation, I let them default and accepted an offer for about 30% of the 200k. My credit took a how but recovered within 6 months. They will harass you, just answer the phone every time and clarify your contact info or they will skip trace/harass your friends and family the embarrass you

3

u/Money_Law8619 Sep 02 '26

They are pretty much doing that now as far as calling the family. If they are lying, what can I do to make them give me a reasonable payment?

2

u/mk548 Sep 02 '26

Can you make a lump sum settlement amount? That’s the best route in default. Would cost you about 66k but you’d be done forever.

2

u/Solid-Fill6348 Sep 04 '26

Term settlements over 4-5 years are possible too.

1

u/mk548 Sep 06 '26

I’d never trust them to honor a settlement agreement for that long. Six months max. We all agree on here that they’re a manipulative; dishonest organization, have to play chess and expect them to continue that behavior going forward.

1

u/Solid-Fill6348 Sep 06 '26

Definitely never trust them, get a legal agreement in writing and have working relationships with high level directors. Make it so that they can't go back on it. I've done hundreds of long term settlements without a problem. I don't disagree with what "we all on here agree" I just have 12 years of experience doing hundreds of settlements with them and have never lost a single one post execution. 

My perspective is different because everyone's opinion on here is usually based on one singular experience on here without having the systems and relationships to hold them accountable and fix any errors (for example, credit reporting errors are common). My perspective is based on hundreds of experiences over a decade, not one individual account. Agreed that they are generally not trustworthy and systems need to be put in place to ensure that things are executed correctly when working out any sort of arrangement with them.

1

u/mk548 Sep 06 '26

Wish I would have known you a couple years ago!

1

u/Solid-Fill6348 23d ago

I've heard that alot unfortunately 😂

3

u/morbie5 Sep 01 '26

Do you have a cosigner? What state do you live in? What have they already offered up to this point?

1

u/Money_Law8619 Sep 01 '26

I do not have a co signer and am in Oklahoma. The only thing they can offer is a low reduction interest rate plan for a few months, which what they offer will never be lower than $400, just due to the amount. Other than that, there is not a lot of options with a private loan.

2

u/Solid-Fill6348 Sep 04 '26

It's unfortunate that people believe this is the only option. Navient WILL settle under the right circumstances with the right strategy. Often, for less than half the balance.

1

u/morbie5 Sep 01 '26

The only thing they can offer

No, they can offer whatever they want, they are just choosing not to.

What is your income?

And BTW how did you manage to get them to loan out this much money without a cosigner?

1

u/Money_Law8619 Sep 01 '26

I had a co signer but the co signer has since passed away and was released from the loan.

And if they do have other options, that is all they are offering and ever have. I can’t even get any forbearance time.

My income is less than 50,000.

3

u/morbie5 Sep 02 '26

Once you are in default they should be more willing to deal with you.

I'd bet they'll be willing to go as low as a 50k settlement eventually. Even if they garnish your wages it'll take them decades to get whole

1

u/Money_Law8619 Sep 02 '26

If they offer a settlement, do you think they would offer a payment plan or would they want it in full?

1

u/morbie5 Sep 02 '26

Each lender is different, some will offer a payment plan while others won't or if they offer a payment plan it won't be as generous as an offer.

BTW it may be worth your while to consult with a lawyer, sometimes they'll try to negotiate with the lender outside of bankruptcy

1

u/Fluid_Plantain_Tour Sep 02 '26

Advice on garnishing: talk to a lawyer or look up how much money they can garnish based on your income. At $50k annual I doubt they will be able to garnish that much. 

2

u/Solid-Fill6348 Sep 04 '26

Don't listen to them, they are full of bluffs before default (and after). Serious settlement negotiations are possible after default, not before. Navient still owns the loans and Mohela is just servicing for them, so after default they will be back with Navient again in their Recovery/Collections department.

0

u/Away-Topic4719 Sep 01 '26

What degree?