Posted on January 28, 2009 at 3:45 pm Ok, here's the deal.  I have 5 loans from the federal government.  4 of them are stafford loans that are in fine standing (they were rehabed at some point but that is irrelevant now).  I also have a Perkins loan through my school.  The perkins loan is defaulted and has been since 7/2001.  In fact I have never made a payment on it.  Sometime last August (2008) I decided to finally try to do something about the Perkins.  I applied to have all 5 of these loans consolidated with Federal Direct Consolidation Loans.  The five stafford loans were processed immidiately but the Perkins still hasn't gone through (it's been 6 months now).  I have called Direct Consolidation Loans numerous times without any success.  I have called the school but they refer me to the loan servicing company (ACS).  Direct Loans says they need an LVC (loan verification certificate) in order to process the loan.  My representative at ACS claims that she sent out twice now, but when I call direct loans they say they haven't received it (one time someone there said that they received it but the amount came back as zero?? ).  In the meantime the other four loans have been consolidated.  I have since filled out an add on form at direct loans.   Now a couple of days ago I went ahead and checked my credit report.  The Perkins loan is no longer on any of the three credit bureaus!?  It has been over seven years since it went into default.So here is the question.  Can anyone shed some light on what's going on here?  Should I cancel my add on applications and forget about this debt?

Posted on March 24, 2009 at 9:29 pm This is a tough one.  Are you currently being pursued by creditors to repay the loan you mentioned?I would never suggest to someone to forget about a student loan cause that can have hazordous repercussions. A friend of mine has a student loan that he didn't repay and they are pursuing him over ten years after the fact. Check into the situation and keep your options open. But definitely take care of the other loans in the meantime. Chances are, those loans have not been forgotten about. Maybe you have gotten a lucky break. Be ready to repay. But keep your fingers crossed!

Posted on March 29, 2009 at 1:05 pm When the loan is not on the list then its better to shift your focus on other loans which appear in the pending list and deal with them first. And about the Perkins loan, it seems like a long time of 7 years have passed and its very much possible that your pending loan does not appear on the present defaulters list.