So, I have been trying to figure out the best way to go about paying this perkins loan (8,000 at 5.05%) as it has been overdue since march 08. I was contacted by Direct Loans stating that they will consolidate this loan with my stafford loan (25,000 at 6.15%). However, I just found out that on July 25, my school sent this loan to a collection agency. I am deciding between consolidating or rehab. I want to make sure that my credit score is not affected so rehab seems to be a good idea. I also am trying to figure out financially which is the best option. If I consolidate, will I also have to pay the collection fee on top? I also am going to try to contact the school and rehab with them since it was recently turned over to collections. Please advise. Thanks so muhc. William
trying to pick it up TODAY so it turns out that the company who is trying to get me to consolidate (General Revenue Corp) is also the company which is listed as my collection agency. If they are trying to get me to consolidate, do I have any other option? They seem to be rushing it and want to pick everything up today 12-4pm for overnight delivery. Here is the thing. My initial loan was for 8,000 and my interest was around 5.05%. I graduated May 2007 and had to pay back starting March 2008. I have not paid anything yet; however, they are claiming that the total amount due is 8,000 - initial loan 2,316 - interest and late charges 250 - other charges This is making it close to 11K or 3K extra from initial loan. is that correct? they claim that they are not charging a colleciton cost. Also they tell me that once this is done, my credit report will show the defaulted loan to be paid in full. But the negative is from my school. If I consolidate, will the school pull the negative from my report? Thanks, William
