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Student Loan Just Defaulted, need help fast!

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Seangar
New Contributor

Student Loan Just Defaulted, need help fast!

The Student Loan in question is a Perkin's Loan from my college back in 12/2004. I was under the assumption that all my student loans were consoladated, but apparently this one was left out. It's not even on any of my credit reports? I honestly didn't even realize I had it until I received a letter demanding that unless I make a payment it will go into default. Well instead I called the college and told them I was sending in a deferment form...which I did. So I checked out the studentloan website to check on it and it's listed as "defaulted". I really need help as to where I should go from here. I'm calling the college later today and i'd like to be as knowledgable as possible. 

 

1. How do SOL affect this defaulted loan?

2. Should I rehab it or consolidate it with my other direct loans? Like I said this loan's not even on my credit report as of now...guessing it will now that it's defaulted?

3. Can they reverse the default status seeing as I sent in a derferment request?

 

THANKS!

Message 1 of 4
3 REPLIES 3
Seangar
New Contributor

Re: Student Loan Just Defaulted, need help fast!

anyone? I'm about to call my old university...

Message 2 of 4
Seangar
New Contributor

Re: Student Loan Just Defaulted, need help fast!

Well I just called the Student Loan department at my old school, things just got weird. Apparently it's been in default for the past few years and was being handled by a collection agency. This collection agency never contacted me and this defaulted student loan has never showed up on my credit reports. The person I spoke to said that my loan has now been transfered to a different collection agency on 6/10 (they move the loans around every 12 months).

 

I'm not sure if I should call this new collection agnency and work out a rehab? I feel like if it hasn't been reporting on my credit report the past 2 years, I shouldn't kick the bee's hive?

 

Or should I just consolidate this perkins loan with my other direct loans asap? (which I would miss out on rehabbing the loan if it is eventually reported)

 

 

SIDE NOTE: The person I spoke with was same person I did the first time I called the school, who recommended I send in a deferment form. Now today I find out my loan was already in default so it wasn't eligible for deferment? **bleep** is going on? Not sure how I missed this, but on the loan database is show's...

DEFAULTED, UNRESOLVED  06/01/2012 "
Message 3 of 4
SCF
Valued Contributor

Re: Student Loan Just Defaulted, need help fast!

Perkins loans, while they are still federal loans, are kind of a different animal.  Because of the special terms and requirements, they usually aren't included in consolidations unless the borrower specifically requests it.  This is because there are certain types of forgiveness and options that you lose if you consolidate a Perkins with other federal loans, so it can be to your benefit to keep them seperate.

 

Perkins loans are eligible for rehab like other federal loans, and that is what I would reccomend you do here.  Contact the CA who has the loan and ask specifically to get rehab set up.  Once you make your 9 monthly payments, any reporting from the CA will go away (if they even report it), and once the loan goes back to the servicer, which may be your old school, you should get a new, clean tradeline back-dated to when you first took out the loan.

 

Federal student loans are exempt from the SOL, they can be collected indefinitely, so you certainly want to get this loan back in good standing and ultimately paid off.  While you're doing your rehab, you might do a bit of research and see if any of the special Perkins benefits apply to you.  If they don't, you could consolidate it with your other loans when you're done for ease of paying just one servicer, or you could just leave it where it lands and pay it off.

Message 4 of 4
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