OLD Defaulted loans. Rehab them? Pay them off?
09-17-2012 05:42 PM
Went to refi this past weekend and was alerted to EIGHT defaulted SLs on my credit report that have not shown up on my reports in many years. Loans are from 1989 through 1994. All show a date reported as 6/24/2012. All show Date of First Deliquency of 1/2006. NONE show any payment history. Under the Comments sections of each TL is says "Student loand permantly assigned to government, Collections" (varies slightly between CR agencies)
I can pay these off immediately, or I can rehab them if I think that they'd look better after rehabbing, getting them current, then paying them off.
The re-fi, of course won't happen if I decide to rehab the SLs but that's not a big deal. I was just going for a better rate.
Original loan servicer was Sallie Mae, but I think that they are WAY out of the picture. Currently all show on my CR as USDOE. The CA is Diversified Collection Services.
CA is willing to shave off all the CA fees and intereset for the past year for a one-time payment of about $100 less than what I currently owe on the loans.
WHAT WOULD YOU DO??