Hello everyone this is my first post among the many I will make, and I'm in need of advice. I have an AES/CHASE loan that I have not been able To pay, not even one payment. Last activity on this loan was 9/2009 and I don't know what to do with it. I brought all my CC balances to zero and have less then 7% usage on them (cell phone, cable, etc that I pay off each month). I was able to get a car loan for 19k at 10% (I needed a car to get to work) that I never been late on. I just don't know what to do with the student loan. It's currently listed as a collection account with a contact member for status. I want to get my credit to 700+ in 3 years to buy house. What would be a good course of a action on this debt? Please help. Also sorry for grammar or phrasing using my phone to type this up.
***edit*** I believe it's a private student loan, but I can't remember is there a way to find out?
Go to the National Student Loan Data System (nslds.ed.gov) and log in. If the loan is listed there, it is a federal loan. If it isn't, you have a private loan.
If it is a private loan, you'll need to handle it like you would any other collection account. If you have the money, you'll want to work with the collection agency to pay a part or all of the balance in exchange for their removing the account from your reports.
If it is a federal loan, you have the option of rehabilitating the loan by working with the collection agency to make 9 on-time payments over 9 months. Once you do that, your loan will be sold back to a servicer, the collection account removed, and the default status taken off the old loan. You'll also get a new, clean tradeline for the loan.