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I thought the SOL was expired.
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Federal Student Loans do not have any statute of limitation; you are obliged to pay back the loan through out your life. Federal government can get back the loan amount through wage garnishment even without court order and they are rarely written off in bankruptcy. So it will be wiser to pay them off and get out of the debt.
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what should I do now? Any idea?
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Since your loans are already default, you are not eligible for forbearance or deferment. Hence your options are limited now. You can-
- Try to pay them in full
- Consolidate your loans
- Apply for rehabilitation
You need to pay 6 to 12 installments of agreed amount to your loan holder per month basis to rehabilitate your default loans. The payments should be made within due dates and no lump sum payment instead of multiple installments is allowed at all.
If you opt consolidation, your default loans will be restructured under one loan amount and with lower interest rate. So it will be easy for you to repay the loans very fast. Since it's already late, I think you should try consolidation program to start the repayment process right now.
For any more queries please feel free to ask in the forums.
Bryan