Okay got a letter from DCS who has been handling my student loan account for the last 2 years before I found CB. It is a repayment agreement under the Perkins Loan Rehabilitation Program they want me to sign. Now, they state to me this is in my best interest because it will reduce my payment of $100.00 and finance charges. Now, this account has never appeared on my Credit report from EQ, EX or TU in the last 15 years yes, that's how old this thing is. It was from when I was in college( not telling you my age ) My question is do I sign it and send it back or continue with my payments as they were. What's the catch here and why are they trying to help me? Thanks

Well, how long have you been paying on these loans? If it's been 12 months (or close to that), then the form is a technicality and it IS in your best interest to sign it - it sounds like they're talking about taking off or reducing the collection charges. That would mean that you have rehabilitated the loans and they are going to be returned to the school (I think that's how it works for Perkins loans).

Anytime someone offers you lower payments, I think you should seriously consider it. If you HAVE made 12 consecutive on time payments (or will soon) there is absolutely no catch - you're sitting pretty.

I have been paying on it for almost 2 years now every month never late with an agreed amount worked out of $100.00 to DSC. The actual loan is shown as paid by the university as of 6-2003 "Paid as Agreed" but only on on TU. The DSC has never reported.