I'm in the process of getting a mortgage on a new construction loan, but I am in default in the amount of $1,300 on Perkins loans. My total student loan debt is like $60K.
I cannot remember which agency had the defaulted student loans, but when I called them they were really nice and told me I could either do the payment plan for 6mo (guessing because the amount was so low), OR, do a consolidation.
I was told if I did the consolidation, the accounts would be deleted from my credit report, and it would be okay for me to use funding to continue my classes. I specifically asked if everything would be deleted as in there would be no history of this ever happening on my report, and was told "yes, that is correct".
I applied for the consolidation on February 28, and received an email on March 2 that FedLoan has my application and I should hear something via email within 3-4 weeks.
When I look on my credit report, it says the following:
* DeVry - $800; Date Opened Mar 2013; Open - Account seriously past due/account assigned to collection agency or collection department
Worst Delinquency - Collection; 1-30 day late, 1-60 day late, 22-90 day late
* DeVry - $500; Date Opened Feb 2011; Open - Account seriously past due/account assigned to collection agency or collection department
Worst Delinquency - Collection; 0-30 day late, 1-60 day late, 26-90 day lates
From your experience, does this sound correct? I want the account deleted because of the negative payment history, which is why I chose consolidation. BUT, if that information stays, I could have just paid the balance in full.
