student loan settlement questions

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Really long story short, I owe a lot of money in federal student loans. They are all consolidated, with Navient. I am going to try and ask for a settlement once I'm 120 days past due. I cannot find the answer to my question anywhere - If I file jointly with my husband, will Navient take the tax filing into consideration (because on paper we make enough to make payments, but we all know that on paper isn't reality)  or will they just jump at the chance of getting money from me?  I only ask because filing jointly will give us a refund, which we rely on yearly, and filing separately will cut that refund by 75%.  

Thanks in advance for any insight you might have.

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What do you mean settlement? Do you think they're going to reduce the amount you owe? They don't do that.

Student loans are guaranteed by the government; there is literally zero incentive for them to reduce your balance.

IBR or PAYE reduces your required amount due per year to 15% or 10% of the difference between your MAGI & the poverty line.  Are you on one these programs?


PS - Going delinquent on federal student loans is probably a bad idea.  The government will garnish your wages and withhold IRS tax refunds.

You need to file your taxes to maximize your refund.

The student loan lender is NOT going to cut your loan balance simply because you ask nicely. If you're having problems paying your student loans then look into the income based repayment plans and the loan forgiveness plans from the government.

You may be able to file separately to reduce your IBR, wait 2.5 years, and then amend to married file jointly and get your refund. I am not certain of this, so confirm it with your own research.

Time to cut expenses and start making payments.

InDebtInNewHampshire said:   Really long story short, I owe a lot of money in federal student loans. They are all consolidated, with Navient. I am going to try and ask for a settlement once I'm 120 days past due. I cannot find the answer to my question anywhere - If I file jointly with my husband, will Navient take the tax filing into consideration (because on paper we make enough to make payments, but we all know that on paper isn't reality)  or will they just jump at the chance of getting money from me?  I only ask because filing jointly will give us a refund, which we rely on yearly, and filing separately will cut that refund by 75%.  

Thanks in advance for any insight you might have.

  
Student loans aren't charged off like every other loan so good luck trying to settle it.  They'll just forward it over to the government and you'll end up paying more for it.

The only payment plan I know of that doesn't allow you to file married-separately is REPAYE....regular PAYE does allow you to file separate, but you must not have loans prior to oct. 1 2007, and must have them after a certain date as well. I would caution against filing jointly because if you are due a large refund together, they may just take it all even if part of it is your spouse's.

Edit: File separate and get some refund, then turn around and amend. It really depends how long you have been in default. Yes the refund may take longer (and I suggest you see what month they start going for the tax refund using google). It really comes down to their timing. I thought "default" is not until 270 days, so I don't think you're there yet. Stop giving the government their free loan they'll soon be stealing from you.



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