Perkins report for life, thats Federal money straight from Uncle Sam. As a Federally guaranteed loan, basically if you default the government reimburses the school (who is the lender in this case), then the Dept of Education is on the hook to get it back.
Staffords (subsidized) follow the 7 year rule because they are usually issued through private lenders on behalf of the Federal Government and are not directly funded by the Feds. The feds only pay the interest while you are in school. Defaulting on these results only in the lender being on the hook to collect, the Federal Government is only out whatever interest it paid. However they may come after you as paragraph below for that interest.
As with any government debt, there is no statute of limitations on collecting, and you can be sued past the seven year mark, and THAT judgement can be reported. Its just like the IRS obtaining a Tax Warrant. Additionally, the Dept of Education can and will lien all of your property, levy your bank accounts, and intercept your tax returns. So while a Stafford will fall off your report like any other private loan, its a special case as like the Perkins loan it doesnt actually go away. It will also prevent you from getting an FHA mortgage loan or any other federal grant or benefit. (CAIVRS) Unlike other loans that default and then fall off your report, because the Government has a vested interest, the lender can also continue collection activities, even if they are no longer eligible for reporting. Garnishment, levies, and the usual letters and the like will never stop even when your credit reports recover.
Unsubsidized Staffords follow the seven year rule, period, as they are essentially just private student loans, and the debt is technically private debt, the government didnt pay anything.
