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guest

I lost my job 3 months ago and since then I haven't been able to make the minimum payments for my Federal Perkins loan. So, I got a letter today saying that my account have been referred to a collection agency (Continental Transactions).

What is the best way to go about this? Should I contact the collection agency now and try to negotiate repayment options? I'm still unemployed but I have job interviews next week. But I'm unsure if I will be able to make enough money to make minimum payments for this loan. The total amount of the loan is around $4500, and with the 33% fee (that they said they will include), it'll be something like $5500 total.

Also, I can't recall if I co-signed with my father on this loan or not. If so, will my default affect his credit rating as well, or just mine?

Posted: Sun Jun 08, 2008 5:34 pm Subject:

Perkins loans take 280 days of non payment to default so it sounds like you have been in default or verging into default for awhile. Did you ever contact the school or the servicer prior to the default to defer or forebare the loan? As a federal loan you could have had up to to 3 years of economic deferment. Now that you are in defaault you no longer qualify for any of those priveleges.

You will need to contact the CA to set up some sort of payment plan. You should be able to qualify for the rehab program with payments of $50 per month for 12 months.

Perkins do not require cosignors.

guest · Posted: Mon Jun 09, 2008 4:06 pm Subject:

Thank you, SOAPLADY for your response.

I missed 3 months of payments, nowhere near 280 days. I thought I could only do a forbearance under certain conditions? From what I read on the information that was given to me, the only reasons for forbearance are if you're a full-time student, a teacher, or in the military.

So far I have no heard from the collection agency, though I only received the letter from my school a few days ago. So there's zero chance I can contact the school to work out a payment plan?

In any case, $50/month is very doable for me and at this point, I'll take the lowest monthly payment I can reasonably pay.

Posted: Tue Aug 12, 2008 12:13 pm Subject:

I had no idea that you had up to 280 days of non-payment before you loan could go into default. Does this mean any payment on file or be current on payments? If so my school gave my loan over to a CA at 150 days. I am current now and I asked the CA could my account be given back to the school they said no. What should I do

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Federal Perkins Loan in default... now what?

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