What is the best way to pay off seriously delinquent student loans?
Date: Wed, 10/06/2010 - 18:58
What is the best way to pay off seriously delinquent student loans?
I haven't paid my student loan in about 2 years. I wasn't going to school for a couple of years, even though now I am taking a few classes. I know with some credit companies they will take less money if you pay with a large chunk of money. However, I know that student loans are government run, so I'm not sure, but I think that they wouldn't work that way and I would be forced to pay the total amount. I really just want to pay it off, but I was wondering if I should just pay it off in one lump sum, or start making payments now?
You are not just serious deliquent....you would be in default.
You are not just serious deliquent....you would be in default. Default on a federal loan is a serious matter. Yes they will settle but not the the same extent that other consumer debts will. You have already been charged up to 24% in collection fees...as a general rule, they will discount some to all of those fees.
Making payments on a default will not help your credit. The best option is to rehab your loan.
