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Citibank private student loan question

Date: Tue, 07/20/2010 - 21:09

Submitted by anonymous
on Tue, 07/20/2010 - 21:09

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Total Replies: 3

Citibank private student loan question


Through a series of unfortunate events, my husband has accumulated a significant amount of debt with Citibank. Out of desperation, we enrolled with a debt settlement company and have been working with them for the past year. We got an email today from the company saying they cannot settle with private student loans (after I had asked them repeatedly if we could). There have been a couple of people on this forum saying DCS offered to settle with them. Does anyone know for a fact if you can settle private student loans? We defaulted on the payments because the debt settlement company told us we needed to. We want to pay back our debt, but it is impossible to do so right now. We are living with my in-laws and have very few assets, but are willing to sell them to get back on track. Is this something Citibank might take into consideration? My husband called Citibank today and they said they would 'buy' back his loans if he wrote them a letter requesting they do so.


Oh boy....debt settlement company gave you some really bad advice. And no, Citibank WONT buy or un-default a loan no matter what letter you write.

Private student loans as a general rule will settle but not to the same degree that other consumer debt will. The will waive collection fees and interest but usually not principal. They will sue even if you are making payments. And they will not negotiate with third party settlement companies. Your debt settlement company probably knew this. This is standard right across the industry.


lrhall41

Submitted by SOAPLADY on Wed, 07/21/2010 - 06:46

( Posts: 17315 | Credits: )