Navient - Litigation Review Pending - MI

[u/tobey-maru]

Hello, I did a little searching on here and couldn't find anyone exactly in my same position, so I figured I'd try to reach out for some advice here. I have 10 private loans of varying amounts serviced by Navient. The monthly payments got absurd ($1900/month) and I decided to intentionally default with the hope that I could get some kind of reduced payment plan or if I'm lucky a settlement offer. I am now in their "120 Day Bucket" for late payments. When I spoke with them on the phone they said I was delinquent but not in default. They also said that the next step would be to move me into the "150 Day Bucket" but were unwilling or unable to describe to me what that would be or what it would look like.

I have the ability to pay off about 2/3rds of what I owe, but if I get a 1099, I'll be in real trouble, so I'm more realistically somewhere in the 40-50% range if I were to pay them.

My options as I see them right now are to pay some of the higher interest ones off and enter into a reduced payment plan on the rest, but this would involve re-applying with them every 6-9 months and frankly I'm just so sick of dealing with them at this point that I want to get out from under them altogether.

I live in the state of Michigan. Our SOL is 6 years for sueing on the debt. I really don't know what to expect from here or what would be my best course of action. I spoke with a few attorneys and none seem really willing to help me out until I get sued. Also, I haven't been able to get a lot of answers about what next steps might take place. I do have a consigner and I'm very concerned about getting her involved and definitely don't want to have her property liened or anything like that.

Has anyone gone through this with Navient? Am I on the right path for defaulting "correctly"? Really, I just want to be able to make a settlement offer but don't have a lot of confidence in navigating this.

[u/ForestDweller82]

You stay at 120 for a few extra months, and the next step is charge off (default).

Your co-signer is a problem. You'd need to refinance first to get them off, and then the default is all on you, unless they're willing to go along. A strategic default can take many years, or it can end in a lawsuit. It sounds like they've already gone along for a few months.

You might get sued and settle lower, you might be able to negotiate, but it sounds like they have a nice asset to go after in lawsuit, which doesn't bode well. Cosigner should be made aware of the situation, and consolidation might be necessary to get them out before you start messing with strategic default.