I am in the process of working on my credit and getting all of that in order. I am now down to my last accounts that need to be addressed... student loans; I believe these were private loans.
These two accounts have been in default for 6 years (next June would make 7 years)... One account is approx 3500 and the other 4800.... I called in today to National Student Loan and ACT is handling the collection of these accounts. They are willing to settle for 85% or do a rehabilitation for 9 months.
Which is a better option.
It depends on what your goals are for the year. If you settle are they willing to update your report positively ? When you rehab, the neg info remains until after 9 months of on time payments and then it will be a couple of months before they update your report. Can you afford the 85% ?