perkins loan questions

[NoelleNoelle]

Hi, I have what might seem to be silly questions. I have searched on the boards and have not found my answers.

DH has a defaulted Perkins loan that is still with the school. I called them and they say the balance is 1018. We can pay it in full. They have no idea what rehabbing is in relation to a perkins loan. Should I just pay it in full? Will this start the reporting clock for another 7 years?

 

I realize it will be darn near impossible to remove this nasty from his report, but I would at least like an idea of how long it's gonna haunt us, as we were hoping to buy a home soon. I realize his score will probably tank from paying it in full. Thanks for any help.

 

-noelle

[LynnInMN]

Hi, I have what might seem to be silly questions. I have searched on the boards and have not found my answers.

DH has a defaulted Perkins loan that is still with the school. I called them and they say the balance is 1018. We can pay it in full. They have no idea what rehabbing is in relation to a perkins loan. Should I just pay it in full? Will this start the reporting clock for another 7 years?

 

I realize it will be darn near impossible to remove this nasty from his report, but I would at least like an idea of how long it's gonna haunt us, as we were hoping to buy a home soon. I realize his score will probably tank from paying it in full. Thanks for any help.

 

-noelle

 

Your balance is too low to rehab. After 12 months of payments, you need to have at least a $1000 balance to rehab.

 

Reporting will continue for 7 years from the default date. Paying this off will not restart the clock.

[hkbushido]

or you can wait a couple of years, have it incur more interest and collection fees and then start rehabing it. this way it will be gone in what 3 years? but obviously at a much higher cost. or is this cost worth a clean report to you? you be the judge.

[NoelleNoelle]

thxs so much for the input...I went ahead and paid it. one less thing to worry about, plus the money was owed afterall

[Cynic]

thxs so much for the input...I went ahead and paid it. one less thing to worry about, plus the money was owed afterall

 

grats!