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Rehabilitate Student Loan or Settle

Valued Member

Rehabilitate Student Loan or Settle


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.

Established Contributor

Re: Rehabilitate Student Loan or Settle

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% ? 

BK7 Discharge 1/16
10/15 ~ EQ: 406; TU: 520
10/18 ~ EX: 666; TU: 646; EQ: 652
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