Ok, I'm a newbie here, need some help. I have student loans in default. The collection agency gave me 2 options: 1) they will pay the loan now, and give me a new loan. my defaulted loan will show as derogatory/paid. or 2) they will work with the original lender, and if I make 12 months of payments, they will delete the entire loan history from my credit report. however, my loan will say 'default' for those 12 months. which is better? Thanks
I have the same situation with my SLs.. I've chosen to make the 12 on time payments and have all the negs removed at that time. Granted, it takes longer but in the end it's worth it. With refi'g with another lender, you still have the o.c showing all those negatives. There's really no added benefit.
