Ok my buddy asked me this question because i recently paid of my student loan, but his situtation is a little different.... He has the decison of paying of a loan for $3900 and it'll show Paid collection or course... Or he can pay $1780 then they will stop garnashing his check, he'll then be elgible to be on the rehab program again, but he has to make 12 concesecutive payments in order for the tagline of "Defaulted Student Loan" to be removed. Also the delinq will be romoved and he'll pay as normal.. His question he want to be done with it. If he pays the 3900 can he after so many months contact the agency and ask for a good faith update and removal of the delq or some, Or should he pay the $1780 and get back on the rehab.??? I was stumped because paying the 3900 he's done, then maybe negotiate to get negatives updated.. paying the 1780 he stills have to wait 1 full year for the defaulted to be removed? what's better having paid collections or defaulted student loan to show for another year??? Shit i miss one payment on the rehab the got my ass, i quickly took out a loan and paid them off.. What does anyone els think????
Nope, he has to rehab while he's in Delinquency. Once he pays it he's no longer eligible. I know it's extra work, but I would suggest he hang on and rehab.
Rehab - definitely. BUT - big BUT here - the servicer is only required to remove the DEFAULT (I9) status. The past delinquincies of the current servicer (as wel as any past servicers) will in all likelihood remain. See my post about Student Loan Rehab.
Hey Thanks for the information, it appears the rehab is the way to go for him.... I'll read your other post and suggest that... Shit i should've not been to haste when they scared me, could hang on to that 5600...... So i guess there's no benefit of paying it off and getting "Paid Collection"
