Student Loan Default

[Kmartt]

Hi all,

 

I'm 24 years old with student loan debt. I've got $20,000 worth of loans consolidated and another $17,000 of private loans from Sallie Mae that have gone into default as of July 31st. The debt collector has offered me a settlement of $9,600 but at the moment I cannot pay this. I have finally landed my first professional job where I'll be making $48,000 annually. However, I cannot pay the $9,600 at the moment and by the time I can save up that amount working it will be too late. My credit score is so bad from missing all of my payments that obtaining a line of credit to pay off the defaulted loan is next to impossible. I am trying to gather all of my options and have considered filling chapter 13 bankruptcy. If anyone could give me some advice on the situation I would greatly appreciate it.

 

Thank you,

Kyle

[tmcgill]

I'd repost this in the Student Loan section on this forum; you'll get more specific responses from the posters who have a lot of insight and knowledge about SLs.