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Defaulted loans

Date: Tue, 04/28/2009 - 09:29

Submitted by anonymous
on Tue, 04/28/2009 - 09:29

Posts: 202330 Credits: [Donate]

Total Replies: 7

Defaulted loans


Hi everyone!

Hope someone can help me.

I graduated from NYU back in 94 and have an outstanding Perkins loan (and maybe Stafford & PLUS, too - can't remember).

I've never been in touch since cause my financial position was so precarious, but clearly they must be seriously in default/delinquent at this point. But I realise that I can't stick my head in the sand anymore and have to get this sorted.

My question is: what do I do when so much time has passed, and - since i have a friend who's willing to lend me the money to pay off the principal (which was under 2000 when I graduated) - is it possible to negotiate a cancellation of some of the accrued interest in return for payment of the principal?

Any advice would be welcome.


No...you will not be able to settle for principal.

Perkins loans originate at the school. The interest is low 4-5%, and would have continued to accrue and capitalize. By now the DOE would have subrogated or taken over the loan from the school, adding on an additional 24% in collection fees. By my guess, you probably owe about $4500 on an original $2k balance. The will waive some or all of the collection fees but almost never waive the interest.

Now if you have other loans as well, the same will hold true. You might wanna log into NSLDS and look up your loans. These will not go away....they can even garnish social security.


lrhall41

Submitted by SOAPLADY on Tue, 04/28/2009 - 09:44

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Thanks a lot for the quick reply guys!

Soaplady, you really seem to know a lot. That was great advice to go to NSLDS. I have to register, but I'm a bit scared that if I give my address, I'll suddenly get pounced on by collectors. I want to "do the right thing" and get this thing behind me, but it would freak me out to suddenly be fully accessible to them.


lrhall41

Submitted by anonymous on Tue, 04/28/2009 - 11:27

( Posts: 202330 | Credits: )