2006-09-25 04:29:11 · 10 answers · asked by ilustjames 1 in Education & Reference ➔ Financial Aid
Can I still receive another Federal loan while in default of the Perkins?
2006-09-25 04:51:22 · update #1
Yes, I do believe at one point this was on my credit report also, half of the amount has already been paid but I longer receive anything regarding this loan account.
2006-09-25 05:40:02 · update #2
Student loans are not like other loans, they are government loans and the US govt will tell you with no hesitation that they now own you and can do whatever they want to you. Student Loans DO NOT go away. The law says that you cannot include student loans in a bankruptcy, they are there forever. They are not controlled under the same laws such as credit card debt. The only way to get rid of a student loan is if you can prove you will never at any point in your life be able to work again. Homeless people have gone to court and been denied relief.
You have simply lucked out so far. I have a Perkins loan from about that same time, I have several other loans too. I thought I was paying ALL my student loans, but turns out this one was not there because the Perkins loans are typically held by the university itself and insured by the government usually thru Sallie Mae. The universities do a lousy job of excerising their duty to find & notify you of this debt until someone gets bored and finds it with all the compiled interest and $8000 they will tack on for 'collection' fees.
You may not be getting notices but the loan is still out there. If you apply for another loan, they will let you know about it. Your best bet is to get in touch with the university, find out who is holding the debt (which agency), and make arrangement to rehabilitate the loan from default status. You can only do this once, but it will remove any negative history associated with this loan from your credit. You will be given a payment based on your income and must make 12 on time payments for rehabilitation. If it is a good company, they will also remove or decrease their fees (mine were d**ks so good luck).
2006-09-25 10:48:03 · answer #1 · answered by nativeAZ 5 · 1⤊ 0⤋
The law requires debts to be removed from your credit report after a certain length of time (7 years?) but that does NOT mean that the debt no longer exists. It still exists and a debt collector can still come after you and collect it. Probably it isnt a high enough amount for anyone to have worried about in the past, but these days it is getting much easier (and cheaper) to track down debts and then locate the deadbeats.... so you still need to look over you shoulder as long as that debt is unpaid. I think when you apply for a new student loan they might ask you if you have ever defaulted. If you say 'no' that would be fraud, wouldnt it?
2006-09-25 15:58:45 · answer #2 · answered by matt 7 · 0⤊ 0⤋
Yeah you got to pay it if you still owe money on it. I already know someone who's continuing to ignore her college loan and she's graduated since 1992 and if you havent started paying you got a lot of interest that's accruded over the time. It will go on your credit report because you havent started paying or made arrangements to have it deferrered until you're able to pay. You need to figure out something because this can harbor you from getting a car, home, credit cards, and other financial assistance if you choose to further your education. Don't let your loans go that long without paying or making arrangements to defer because this is going to hurt you for a long time to come.
2006-09-25 11:45:26 · answer #3 · answered by nabdullah2001 5 · 1⤊ 0⤋
No way! If it is not remaining on your credit report, the company has taken its loss. Check your credit report frequently. Anything that is 7-10 years or more old on there (BY LAW) has to be removed by the credit reporting agencies. If you see this kind of thing on your report, contact the reporting agency and file a dispute. They will have no choice but to remove it from your report.
2006-09-25 11:40:51 · answer #4 · answered by onewikkedwoman 3 · 0⤊ 1⤋
The first thing you need to do is get a recent copy of your credit report. You can get a free credit report and credit score at http://smart-money-help.com/free-credit-report . Even if you have seen your credit report you need to request a new one. Things get added to the report all the time and some of them might not be accurate. Getting rid of the errors and challenging everything is the next step in fixing things. Also, you don't need to pay someone to fix your credit report. There is nothing someone else can do that you can't do yourself. That same website also offers a free credit repair kit. The free kit and the free credit report are all you need to start getting your credit repaired. You can get the free credit repair kit at http://smart-money-help.com/free-credit-repair-kit .
2006-09-28 15:23:26 · answer #5 · answered by Anonymous · 0⤊ 0⤋
hell no!
collectors can be put off forever, I think after 8 years they take it off your credit report and you're basically clear.
perkins loans are government right? well, tell em that rather than you paying off the rest you are sparing the lives of 12 Iraqi children and that the bomb that was going to be dropped on their heads can just not be made rather than you paying for it.
2006-09-25 16:29:03 · answer #6 · answered by phalsephasod 3 · 0⤊ 0⤋
Yes..just because it isn't on your credit report now doesn't mean it won't be in the future. If you do not pay it, they will come after you eventually.
2006-09-25 11:36:27 · answer #7 · answered by Anonymous · 1⤊ 0⤋
Of course you still have to pay. You took out a loan. Pay it back.
2006-09-25 11:36:44 · answer #8 · answered by Doug F 2 · 0⤊ 0⤋
Ye if is bothering you and if the people arent bothering than why are you worried
2006-09-27 21:27:19 · answer #9 · answered by ahmadeyes2001 2 · 0⤊ 0⤋
Was it on there at one point? Have they contacted you about it?
2006-09-25 11:37:26 · answer #10 · answered by Sandi A 4 · 0⤊ 0⤋