Allied Interstate and Defaulted Loan

Right now, first thing you should do is to check if allied interstate has posted the payments to your account? You have been making the payments till date. Know the latest status of your account and if you can work out something with Sallie Mae, stick with them.

it sounds like a student loan rehabilitation. if it is, you must make 12 on-time payments. It does not go off your credit report until the 12 months are done. it will show on your credit report as "in collections" until the rehab period is over. you have to be patient and make the payments on time. if you miss just one payment, the deal is off.

i have defaulted on a student loan that is quite a few years old. i was thinking i could maybe settle for the original loan amount at tax time.could this be an option or would they want entire balance which includes a large amount of interest?

They wont kick the loan to sallie mae. They will take your payments and after 12 - 18 months force you to pay off the loan. If you cant they will force your to pull personal loan before they will continue to accept any payments and only if your loan request is denied!

You more than likely wont get your tax return back....if you are in default it will be offset.

Your current loan balance will include interest and collection fees. They will settle but will only waive a portion of the collections, generally not the interest.

Owes Sallie Mae....after 9 months a loan can be rehabbed, not 12-18 months. And no one is getting a personal loan with a student loan in default.