Paying Off Fed Student Loan in Collections/Default with w/ National Credit Services (NCS)

[CaroleBaskinBB]

I called and they said my loan cannot be rehabilitatedas I had apprently failed at rehabilitation years ago.  They couldn't tell me my interest rate either, saying it had to do with the terms when I got the loans in the early 2000s.  

I'm still left with the same question- should I pay this off first or pay off my husband's credit card.

[Anonymous]

I would pay off the credit card debt personally. You could have yourself refunded as AU but I do know don't stuff stays on your own credit report so idk. That utilization is only bringing your score down. 

As for the loans, I woi I d get them out of default better they're are garnished. You can't rehab but you can still consolidate. The upside is you went need the default to be removed because it's already fallen off and so have any lates. After that you'll be on a regular payment plan again. I can walk you through this if you'd like. 

Hope this helps 

[Anonymous]

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@dragontears wrote:

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@CaroleBaskinBB wrote:

I will ask what the interest rate is.  I'm ashamed to say I allowed the loan to be defaulted for a long time before it went to collections, so I don't know that it can be rehabilitated.

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It doesn't hurt to ask about rehab, I am not up to date on the current requirements but it use to be as long as you had not rehab the loans previously you could qualify. 

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I do want to say there is one aspect about rehab there is little info on. Defaulting on rehab. If you previously rehabbed your SLs, but did *not* conplete the rehab program (when loans get sold to another servicer or sent back to the original one) you *can* do rehab again. You have to start from scratch and do the whole 9/10 months again. Both me and my SO did this and we had different servicers completely. I was 1 payment short of completing the program and my SO never even made the first payment. You also may do it again if you did rehab prior to 2008. I was worried sick that I couldn't do the rehab program because I had almost completed it, but they assured me that I can and I am working on setting it up currently. Honestly, that is a mich better approach than just continuing to pay a CA. Now were your loans Fed or private? That also may be the issue. Private SLs don't always offer rehab. It doesn't hurt to ask! Plus in the end it would give you a very old and long AAoA and that would def be a boost to your credit.

If you dont have amy other credit, you may not want to be taken off as an AU from you DH CC, but if he keeps it at high utilization (over 29%), it may be best to be removed once your CC starts reporting. Dont take my word for it, maybe others could give better insight into the ramifications of a thin profile and removing AU.

Good luck!

[Anonymous]

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@CaroleBaskinBB wrote:

I called and they said my loan cannot be rehabilitatedas I had apprently failed at rehabilitation years ago.  They couldn't tell me my interest rate either, saying it had to do with the terms when I got the loans in the early 2000s.  

I'm still left with the same question- should I pay this off first or pay off my husband's credit card.

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Disregard my previous post. I did not see that you stated you could not rehab. Sorry!