Should I take a student loan settlement for less than I owe or keep fighting for a promise to also remove the item from my credit report?

I owe student loan debt with Sallie Mae. They charged-off and a collection agency now owns the debt. The agency is willing to settle for less than I owe but I also want the item deleted from my report, which they say only SM can do. SM has so far refused to do so. Should I just go ahead and pay the settled amount or keep fighting for an agreement to have the item removed from the report?

Asked on June 11, 2012 under Bankruptcy Law, Maryland


Rebecca Coleman

Answered 8 years ago | Contributor

As long as the information reported by Sallie Mae on your credit report is accurate, there is little chance you will be able to force them to remove it from your report. If you have a settlement offer for the loan that is manageable for you, it probably makes sense to take the settlement. 

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