Having your student loans sold to a collection agency is bad news.
The collection agency will add it to your credit reports for seven years (unless removed).
Your credit score will drop up to 100 points. Qualifying for new credit cards, cars, or a home, will be very difficult.
There are five (5) strategies to remove a student loan sold to collections:
- Write a Goodwill letter to the creditor requesting forgiveness
- Negotiate to pay the debt off early in return for it being deleted from your credit
- Send a dispute challenging the loan’s validity and accuracy
- Claim identity theft (if you’re a real victim) and send an FTC dispute with a police report attached to guarantee removal
- Have a credit repair company dispute on your behalf, handling the complexities for you