Question

Does anyone know what I should do about student loans that are now in a debt collection agency? Should I pay this? How can I help my credit score with this?  

Answer 1

I would contact them to set up payment arrangements sooner than later as I’ve heard of lots of people having wage garnishments from student loans in collections. Depending on the balance and if you have any money saved up, a lump sum offer is another way to go and just get rid of the loan completely by settling for a lesser amount with their agreement to delete the collection status from your credit score.  

Comments

@meningitis I negotiated a monthly payment since I couldn't afford the lump sum they offered me. They said they would take it off the record that I was in default after 12 months. Will that help my score?  

Answer 2

Negotiate payment go with only what you can afford if they want there money they will agree stay firm.  

Answer 3

Definitely, definitely, definitely reach out to them! Don't wait because they can garnish your wages and your bank account. If you contact them, they'll likely be able to work with you on payments and you'll have some control over your debt. If it gets to a garnishment, you won't have any control and all your hard work to get where you are will be gone. Good luck! ❤

Answer 4

Yes. You cannot get away from student loans e. v. e. r. And yes, once resolved your score should increase tremendously