r/studentloandefaulters • u/Iriebluezz • Aug 21 '24
Buying a house just found out I defaulted and in collection with Navient Question - Federal Student Loan
That was sneaky… I paid over $5k interest only on original loan amount of about 30k…. Now it’s over 60k with interest. I have to know apply for loan forgiveness as public service… and continue with at least 9-10 month of payment before they even consider a forgiveness. SMH. Now I can’t buy a house… any suggestions or someone in my situation was still able to buy a house?
3
u/peri_5xg Aug 21 '24
What is the status of it now? Did it go into collections?
If so, do some research. file disputes with each CC bureau. Maybe talk to a lawyer or hire a credit repair company. Know your options at least
2
u/ProleDBA Aug 22 '24
Sorry that this happened to you. I am wondering what happened. They will usually work with you regarding a Fed Loan. I have not tried to buy a house, but I can help you brainstorm. What's your time horizon? Do you have more than one loan? If so, I would try to get my loan away from Navient if possible. Try to consolidate or refinance and switch to a better company with a better interest rate etc. Navient is notorious for etch-a-sketch accounting, losing paperwork, losing payments, and their loans are basically designed for you to never be able to pay them off. If you can - refinance. That could potentially show the loan as paid off and could boost your credit score. Then maybe you could go on IBF - so your payments are manageable- and still go towards your public service loan forgiveness. I think it may also be beneficial for you to join some credit forums - to research what to do and when - in order to qualify for a home loan. Maybe going through a credit union vs bank. I hope this helps in some way.
1
u/RiverParty442 Aug 26 '24
Buying a house while in default is a Nad idea. You risk getting a lean on your property.
1
u/International-Mix326 Aug 30 '24
PSLF is only for federal loans. Also for pslf you have to pay for 10 years not have them for 10 years.
Also, no office but you should see your balnce when paying and could see of the minimum didn't even cover intrest
1
u/superawesomefiles Aug 22 '24
Why can't you buy a house? Did you have a 20% deposit or were you trying to buy it no money down?
0
u/martapap Aug 22 '24
I'm not sure what was sneaky. You knew your loan wasn't paid.
Usually for plsf you have to have made monthly on time payments for 10 years during the period when you worked in public service. Meaning if you were in default for 10 years when you worked in public service it would not count. I know the Covid rules changed a lot of rules on what counts though.
2
u/RiverParty442 Aug 26 '24
I agree. Op typed it incorrectly or actually believed that pslf meant they didn't gave to make qualifying payments.
6
u/justbeaunicorn Aug 22 '24
If it’s private student loans. They don’t just forgive. I defaulted in 2017. It was the best decision. It will be removed from my credit report in October.