Question
Can credit be repaired after defaulted student loans?
I've heard that defaulted student loans will ruin your credit forever, but then I heard otherwise. Will going on a payment plan help or will it only get better once it's paid off? What is the truth? And is it possible to work out a reasonable payment plan or not? So far, the offer is completely out of reach (like half of our monthly income) and they won't accept less.
3 years ago - 6 answers
Best Answer
Chosen by Asker
Student loans are considered to be like your tax responsibilty. Since you have defaulted on a student loan they will stay with you forever like taxes owing the federal government or the state that you live in (if they have income tax, some states do not have income tax). If I were you I would try to set up some kind of payment plan to pay that student loan off. Like taxes if you don't it will haunt you forever. The payment plan shows the government that you are sincere about paying off your student loan and it will make things a lot easier for you. The federal government does not play with student loans or taxes that are owed to them.
by rgamecock1
3 years ago
Asker's Rating: 
Other Answers
as long as u make a payment on things b4 they r 30+ days late u r okay. also it takes up to 7 years for bad accounts on ur credit report to be removed so make sure u pay on time.
by playboyprincess6904- 3 years ago
well there runin ur credit anyway since you have not paid them. It takes 7 yrs before it be removed from your credit. What i will say is just pay them when u have the money or trying talking to them one more time tell you want to pay them put you can't afford that much and if they can make the payment smaller you will be able to pay it
by bdf s- 3 years ago
A defaulted student loan is worse than a bankruptcy because a bankruptcy can only stay on your credit report only 10 years whereas a defaulted student loan can stay on your credit report potentially forever if you never take care of it ! ! !
by steven p- 3 years ago