Can I do a PFD with a student loan?

[jvjr121106]

Hi, I would appreciate ANY help anyone could offer! 

I owe about $2,200 to Texas A&M.  In about a month, I will have the money to completely pay this loan off, but they've been reporting it as charged off on my credit report.  I called, and they said they'll take the money (of course) but it wasn't until I started cruising through these boards that I realized all of the options really open for me.  Is it possible to do a PFD on a charged off student loan?  I know it's possible for all derogatory information to be deleted on rehab loans, but I would like to just pay it off and be done with it already, because I would like to go back to school in the spring.  And if this isn't possible, would a university even consider rehabbing a personal loan they issued? 

I also owe $1,900 on an old Perkins Loan which A&M sold to ConServe (which ConServe now tells me is $4,200 at 5% for a loan that originated in 1998 - is that right?).  I wasn't aware of rehabbing when I contacted them about two months ago to find out how much I owed so I could also pay them off next month.  The guy recommended an immediate monthly payment plan, but he said I wouldn't be able to apply for financial aid or return to school again until the loan was paid off, so does this mean they don't offer rehab loans, or he was just purposely being limiting in the options he offered?

Thanks for any help!

Thanks,

Janie

[LynnInMN]

Conserve is a collection agency and they do not own the loan....federal loans are never sold to CA's.  They are working it either on behalf of your school or the department of education.  By law you have the right to rehab and after 6 payments you do regain your financial aid eligibiltiy . 

The Texas A&M loan... they are a public school so any loans from them would be considered state money/loans.  PFD is not likely. And no...you cannot rehab an institutitonal loan. 

[BungalowMo]

At least you were made aware your Perkins was in collections.  You have an actual default date.

[jvjr121106]

So then, is a PFD an option with the Texas A&M loan?  I just want to know if it's a plausible request, because I'm not sure how student loans work versus closed credit card accounts, etc.   And with the Perkins, do I have to contact ConServe to rehab the loan, or can I also just do that through Texas A&M? 

I would just like to be informed when I call back, because the woman I spoke to may not have known what she was talking about, because she kept having to put me on hold so she could go and collect "answers" for me and was the one who told me that my Perkins loan had been sold. 

Thanks so much for taking a look at my thread!

Thanks,

Janie

[jvjr121106]

Never mind about the PFD question!  I'm such a dolt.  I don't know how I missed that part of the reply.  Thank you!!!!

[BungalowMo]

I just talked to the Dep of Ed.....the black mark NEVER goes away!  This remains on your report forever...and he meant FOREVER.

Personally, this is unacceptable.