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.

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.

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!