<p>So I found out that my Perkins loan for 8,000 went into collections on July 25th. The collection company is GRC (General Revenue Corp) they are a company specializing in student loan collections. Now I have been receiving phonecalls from GRC asking me to consolidate my perkins and stafford (stafford in good standing and in forebearance). The thing is they want me to fill it out and they will get DHL to pick it up TODAY!! So I have no time to think about this. From my understanding, if I consolidate, my credit report will show that it is paid in full but still show that I was 120 days late on my report; however, if I rehab for 1 year, I can get that removed from my credit report.</p>
<p>I know I have limited options with a collection agency and they are asking me to consolidate. I asked them about consolidating and my credit score and they told me that they would work with me to get the negative off my score. The negative is not from GRC but from the orginal lendor (I.E my school and MyCampusLoans). So I feel it is not upto GRC to get this removed.</p>
<p>They also quoted me the following charges
8,000 - initial loan
2,350 - interest and late charges
250 - misc charges.</p>
<p>This makees it 11K when I have a 5% interest and interest could not have accrued that much. I graduated in May 2007 and was set to pay off the loan beginning of March 2008.</p>
<p>my credit score is not too good which is why I am trying to figure out which would be more beneficial for me to consolidate or to rehab.
I found out the exact breakdown as this:
8,000 - initial loan
217 - interest and late fees (from original lendor)
2240 - Collection cost (28%) although they told me there was no collection cost.</p>
<p>I know I was irresponsible and stupid for getting to this situation in the first place, but I am in it and I have to figure out a way out in the best way possible.</p>
<p>From my understanding, if I consolidate, my credit report will show the perkins as paid in full (I have a new debt); however it will still show that I defaulted 120days for another 7 years from the original lendor (this is where GRC -collector states that he will get this removed).
If I rehab, I have to make 9-12 on time payments and once I do, the negative 120 days will be removed from my report.
The thing is that the guy from GRC tells me that if I consolidate, I will be in good standing in 60 days while if I rehab, it will take me 12 months but is vague on whether good standing means that the negative will be removed.</p>
<p>I feel that he is rushing me by trying to pick it up the next day just so I make this decision without thinking. But I also feel I have limited options because GRC who is trying to get me to consolidate is also my collector.<br>
Ultimately, I would like to pay less collection costs and have the better credit report whether I rehab or consolidate (which I think would be rehab).</p>
<p>I am trying to get what my contact from GRC is claiming, would happen if I consolidate, in writing. I can start to pay the perkins loan off immediately but can not pay it in full. </p>
<p>I am thinking that consolidating might now be the best option for me and they are just trying to get all my loans and really will not follow through what they claim will happen.</p>