I have several “Us Dept Of Ed” loans that were defaulted 7 years ago. Will the default negative remark be removed from my credit report after 7 years of non-payment? I understand the money is forever owed and will continue to add interest etc. I am specifically concerned with my credit at this time. Also, if it has been more than 7 years since the default (assuming it would have been falling off soon due to the elapsed time) and it's still on my report, and I pay it in full before September 29, will this new payment cause the remark to stay on my report for another 7 years? Even though it will show payment in full. Thank you 🙏
No It will remain on your credit until the debt is removed from default,You have until Dec 31st to file for the fresh starts program for free at Debt management services ...be sure to request an income based repayment. you will be removed from default and placed in good standing, this will be reflected in your credit report
Fresh Start ended 10/2, it was briefly extended for 1 day per the Department of Education: studentaid.gov/announcements-events/default-fresh-start. That being said, anyone can cure a loan default with a consolidation or rehabilitation now and then enroll in IBR. A rehab is probably best on the credit as it will remove negative entries for missed payments. It can't give someone credit during Covid for any default though.
So the only question people really want answered; How can i not pay these back? Like at all. Mine are federal and are accruing 0 interest until payments restart July 2025. Obviously cant bankrupt federal student loans but what options do i have for not giving the feds money?
This is too broad of a question, I'd suggest a strategy session with us to see what options still exist and apply to you. Also, you can seek a discharge of both federal and private loans in a bankruptcy through an adversary proceeding. They are not automatically discharged, but there is a new process that both Biden and Trump supported to show undue hardship. We can be reached at 813-258-2808 or info@christiearkovich.com.
I have several “Us Dept Of Ed” loans that were defaulted 7 years ago.
Will the default negative remark be removed from my credit report after 7 years of non-payment? I understand the money is forever owed and will continue to add interest etc. I am specifically concerned with my credit at this time.
Also, if it has been more than 7 years since the default (assuming it would have been falling off soon due to the elapsed time) and it's still on my report, and I pay it in full before September 29, will this new payment cause the remark to stay on my report for another 7 years? Even though it will show payment in full.
Thank you 🙏
No It will remain on your credit until the debt is removed from default,You have until Dec 31st to file for the fresh starts program for free at Debt management services ...be sure to request an income based repayment. you will be removed from default and placed in good standing, this will be reflected in your credit report
Fresh Start ended 10/2, it was briefly extended for 1 day per the Department of Education: studentaid.gov/announcements-events/default-fresh-start. That being said, anyone can cure a loan default with a consolidation or rehabilitation now and then enroll in IBR. A rehab is probably best on the credit as it will remove negative entries for missed payments. It can't give someone credit during Covid for any default though.
So the only question people really want answered;
How can i not pay these back? Like at all.
Mine are federal and are accruing 0 interest until payments restart July 2025.
Obviously cant bankrupt federal student loans but what options do i have for not giving the feds money?
This is too broad of a question, I'd suggest a strategy session with us to see what options still exist and apply to you. Also, you can seek a discharge of both federal and private loans in a bankruptcy through an adversary proceeding. They are not automatically discharged, but there is a new process that both Biden and Trump supported to show undue hardship. We can be reached at 813-258-2808 or info@christiearkovich.com.