I received a letter from my college regarding my student loan which is in collections. I definetly want to pay this off, but need some advice, so I dont get burned in approaching the sitaution the wrong way. I understand that a Perkins loan don't fall under the SOL, so I need to pay this thing off ASAP. On my CR, its shows it being in collections since 1997. I just want to pay this thing off and it be removed from my CR. Where should I start? Should I call the loan counselor at my school or respond in writing? Here's my letter I received... Dear Borrower, We show an unpaid balance of 1000.00 that is seriously in default. We have exhausted every effort to try to reconcile this account. If you are unaware, the Department of Education has permitted a one time offer of Rehabilitation which you may qualify for. This allows you to make monthly payments for one year, then upon completion of this program you negative credit history will be reversed and your account brought to current. I hope to hear from you immediately so that the matter can be resolved without taking further collection steps Perkins Loans Counselor
You have to make 12 on-time monthly payments for the federal rehab program (depending on the lender - some let you make 12 payments over 12 days - it never hurts to ask LOL). Once you complete that, they remove the negatives from your credit file.
