(Closed) Student loan help please :o)

posted 3 years ago in Money
Post # 2
Member
970 posts
Busy bee

Since he still has a fairly significant amount of debt and you are about to take some responsibility for it when you marry, I think it makes a ton of sense to hire a financial planner to look over your loans and guide you through. The whole process should only take a few hours and a few hundred dollars but will leave you with such peace of mind.

Plus, since he has been paying the loans on time for a while now he could probably refinance for a much lower interest rate. 

Not to totally freak you out, but the worst case scenario is that he hasn’t been paying at all on that sold loan and it’s now defaulted, which would tank his credit score. You can check your credit score for free if you sign up for mint.com which is a great tool to have in general.

Post # 3
Member
2136 posts
Buzzing bee
  • Wedding: August 2014

I’m not sure I understand the question. Is he not paying off this loan right now? When a loan is sold, he should have gotten information from the new loan servicer about logging into their online service so he can pay it, view his balances, see the interest rate, etc.  How do you know how much debt he has if he doesn’t know the balance of this loan? It’s hard to give advice since I’m not clear on what the problem is here, but the short answer is he needs to be paying this now, not after the wedding. 

Post # 4
Member
5088 posts
Bee Keeper
  • Wedding: December 2014

Yeah, I’m also confused. Are you saying he has a loan that he doesn’t know where it’s serviced and he hasn’t been paying?? If so, that’s a big problem as he’s likely defaulted. You need to pull a credit report for him. That will show all the loans that he currently has and their balance. There is no reason to be playing guess work with this, it takes 5 mins to get a credit report online.

Post # 6
Member
570 posts
Busy bee

you need more info. where are his payments going now? but he is still paying right? that’s the most important. I’m guessing he is since he had 100k at one point. keep it in perspectieve: he’s got about a fully loaded Honda  worth in loans right nowand that education will be worth more 10 years from now than that same honda wouldve been. just chill. he can easily call his old agency and get the info for his new agency if needed.

the worst outcome? He’s defaulted. not paying his loans, and ruined his credit, for years to come, but at least they cant throw him in jail for it since its not a criminal act to default (yet) 

Post # 8
Member
44 posts
Newbee
  • Wedding: June 2010

Have you looked at his credit report?  Is it not showing on there at all?

Post # 9
Member
44 posts
Newbee
  • Wedding: June 2010

His current credit report should have a pretty accurate balance on it.  They report every month, if it is not on there he needs to contact the original loan company and find out who they sold it to.  Since he knows it was sold he should know or at some point (when he was told it was sold) have been told where it was going.

Post # 11
Member
5088 posts
Bee Keeper
  • Wedding: December 2014

If he has another loan with a different servicer it doesn’t matter that he’s been making payments to navient, the loan with the unknown servicer is not getting paid. When you have multiple servicers you have to pay them individually. I agree with PP that if this was sold, the original servicer should know to whom it was sold. Also a little suspect that it’s not on his credit. Has he pulled all three credit bureau reports? If it was a federal loan he also might be able to get more information from the DOE.

Post # 12
Member
2136 posts
Buzzing bee
  • Wedding: August 2014

You said that he’s paying, but are you sure he is paying this loan specifically? If his loan was sold, and he only pays Navient – then sorry, but he is not paying off this loan. If he doesn’t know the lender, I’m not sure how its possible he is paying on the loan.   Has he received any paper work from the lender? At the very least, he should be receving a yearly statement of the interest paid on the loan if its being paid off to write off for tax purposes. If he hasn’t received that….I’d assume that its not being paid.

I would pull your credit report from an actual credit agencies, not use one of the free services. Contact Navient and find out who services the loan now. Call them, find out the balance, and when the last payment was made. 

I’d find it troubling to go three years without knowing the answers to any of these questions. 

Post # 13
Member
44 posts
Newbee
  • Wedding: June 2010

Is he sure that it was actually sold if it’s not showing on his credit report?  He needs to contact Navient and find out what if any of his loans were sold and to whom they were sold to.

Post # 14
Member
1104 posts
Bumble bee

View original reply
anthonyswife :  estimating a loan without knowing the exact figures in terms of principal and interest is a recipe for disaster. he needs to find out the actual facts ASAP. 

i write about personal finance quite a bit, and while i am NOT a financial advisor, here’s what i can tell you: people think that when loans are sold or terms change that they’ll be clearly notified. that’s not often the case. if he wants to be sure HE has to do the leg work and figure it out. it sucks, and he’ll get the runaround and stay on hold for a long ass time, but that’s the way it is. it’s not like school where the teacher spoon feeds you what’s going on when there’s a change, they (meaning the loan issuer) expect the debtor to take on the responsibility of figuring things out and keeping track. 

on another note, big props to your man for paying off a tremendous amount of debt! he’s clearly a savvy dude, he’s just not quite being proactive enough with this one. maybe offer to help? he might just hate the process of calling and researching what’s going on but be great at actual day to day budgeting and paying off. 

Post # 15
Member
13888 posts
Honey Beekeeper
  • Wedding: November 1999

View original reply
anthonyswife :  Is it a Federal Loan?  The Department of Education has a site where you can log in and see a snapshot of all of your loans no matter where they are being serviced (provided they are federal loans).  It’ll tell you the outstanding balance (as last reported, so may be +/-a month’s payment) and you can compare that to what you know is the Navient balance.

FWIW, if you’re paying Navient and the loan was sold to another agency, you are not paying on that loan.  The fact that it’s not showing up in his credit report is strange, though.  I’d make sure he gets on the phone to figure this stuff out ASAP, and not wait until you’re married.  Student loan interest accrues daily, so it’s costing you more every day that he pushes it off.

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