Federal Perkins Loan in default... now what?
Date: Sat, 06/07/2008 - 17:59
Federal Perkins Loan in default... now what?
What is the best way to go about this? Should I contact the collection agency now and try to negotiate repayment options? I'm still unemployed but I have job interviews next week. But I'm unsure if I will be able to make enough money to make minimum payments for this loan. The total amount of the loan is around $4500, and with the 33% fee (that they said they will include), it'll be something like $5500 total.
Also, I can't recall if I co-signed with my father on this loan or not. If so, will my default affect his credit rating as well, or just mine?
Perkins loans take 280 days of non payment to default so it soun
Perkins loans take 280 days of non payment to default so it sounds like you have been in default or verging into default for awhile. Did you ever contact the school or the servicer prior to the default to defer or forebare the loan? As a federal loan you could have had up to to 3 years of economic deferment. Now that you are in defaault you no longer qualify for any of those priveleges.
You will need to contact the CA to set up some sort of payment plan. You should be able to qualify for the rehab program with payments of $50 per month for 12 months.
Perkins do not require cosignors.
Thank you, SOAPLADY for your response. I missed 3 months of p
Thank you, SOAPLADY for your response.
I missed 3 months of payments, nowhere near 280 days. I thought I could only do a forbearance under certain conditions? From what I read on the information that was given to me, the only reasons for forbearance are if you're a full-time student, a teacher, or in the military.
So far I have no heard from the collection agency, though I only received the letter from my school a few days ago. So there's zero chance I can contact the school to work out a payment plan?
In any case, $50/month is very doable for me and at this point, I'll take the lowest monthly payment I can reasonably pay.
I had no idea that you had up to 280 days of non-payment before
I had no idea that you had up to 280 days of non-payment before you loan could go into default. Does this mean any payment on file or be current on payments? If so my school gave my loan over to a CA at 150 days. I am current now and I asked the CA could my account be given back to the school they said no. What should I do
i had the same problem. what you can do is consolidate your loan
i had the same problem. what you can do is consolidate your loans ie. your perkins loans with your subsidized loans and the new company who you consolidate with will pay the debt off for you. you then start over fresh with them. It should be a guarented loan.good luck
Here's the thing, if you don't make your payments or contact you
Here's the thing, if you don't make your payments or contact your school, you may be referred to a collection agency as early as 90 days past due--or three missed payments as in this case. Default in Perkins loans is very weird and calculation goes towards what schools must comply with, the COHORT DEFAULT RATE. COHORT Default means your oldest dollar hit that 280 day window. Default is technically missing a payment, cohort default is missing enough to hit 280 days. Two different things. Your best is ALWAYS to stay in touch with your school. There are so many different things you can do to stay out of trouble with Perkins loans. Now your best bet is to ask for rehabilitation to get your loan current and off your credit report. good Luck.