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Should I settle? Have 2 days to decide

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Topic: Should I settle? Have 2 days to decide

Posted By: linus2012
Subject: Should I settle? Have 2 days to decide
Date Posted: 12/September/2012 at 4:16am

Hi everyone,

I have student loans (National and from Nova Scotia) from 10+ years ago. To make a long story short, I defaulted, went through bankruptcy, and they sat with the government collection agencies until I was discharged from bankruptcy and so was my trustee.

I've been paying off the Nova Scotia loan for a few years now and it is currently at about $7500. I've been paying off the National loan for a year or so, and it's at $18000. I have no other debt and am wanting to build credit so I have been using and keeping up to date with a secured credit card as well as paying these off.

Now, I am making better money and have some saving. I'd like to make a bigger dent (I pay $175 on the NS loan and $225 on the national loan). The agent that I deal with on the NS loan offered me a deal: pay $5000 in the next two weeks and I'm done. I'm seriously considering this, but I'm also considering not settling and just paying $2000 now and upping the payments to $300 so I get this paid off in full in 19 months without settling.

I keep searching for informaiton online about whether this would be a good idea and I don't know who to ask about this. Mostly I want to know:

- Is settling bad on my credit report, or will it be no different than paying off this loan in full since I have defaulted on it in the past?

- If I didn't settle and just made bigger payments, does it make sense to wipe out the smaller loan first or be more agressive on the bigger loan?

- Essentially, I don't want to be paying loans for 10 years more. What should I do that will be best to build my credit and get these gone fastest?

Thanks for any advice or direction to somewhere that I can get advice.

Replies:

Posted By: SolveStudentDebt
Date Posted: 12/September/2012 at 6:06am

The Nova Scotia Government collection unit at Service NS and Municiple Relations, or the Bank of Nova Scotia?

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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com

Posted By: linus2012
Date Posted: 12/September/2012 at 7:07am

Service NS

Posted By: linus2012
Date Posted: 12/September/2012 at 3:09pm

Another thing to note is that I just got my Equifax report and neither loan is included on it - as an open account or in collections.

Is this because I defaulted over 6 years ago? Will it show up if I pay or settle? If so, will this lower my score or raise it? If it will never show up does paying it (or not paying it) have no affect on my credit rating? If it has no affect and will never show up, am I only paying it so they don't take my wages because they are the government?

Sorry for all the questions.

Posted By: SolveStudentDebt
Date Posted: 14/September/2012 at 4:23am

Is $5000 the principle of the NS Loan at Service Nova Scotia?

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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com

Posted By: linus2012
Date Posted: 14/September/2012 at 5:06am

Yes, I believe they are willing to do that because it's what I owe from the original principle.

Posted By: linus2012
Date Posted: 14/September/2012 at 8:46am

I just asked them to clarify: they said that this is the guaranteed portion of my NS student loan, the portion that the Service NS collections agency paid to the bank at the time that I defaulted.

He says, upon me making the settlement payment of $5,000 my file will be closed.

Posted By: SolveStudentDebt
Date Posted: 16/September/2012 at 7:46am

Is it Mike or Chad Sullivan you are dealing with? If so, get them to email you a letter with conditions.

Have you actually seen your credit report to this point?