- Centurion Member
- Posts: 4913
- Joined: Sun May 20, 2012 4:35 pm
- Location: WI
Since you want to fix it to fix your credit the only way to do that is get it right.
As far as I know student loans are different from other installment loans, and they can't be discharged in BK normally (there are exceptions to everything, but it's hard to do this) and I have read the IRS can withhold your tax return to pay on these as well. They are not as easy to dodge as other types of debt like credit card. And since you want to make it right anyway, and not dodge it, I would contact them and get a payment plan going. 13k is not a lot of money honestly and you should be able to re-negotiate decent payment terms.
My loans were backed from Uncle Sam and he really doesn't like it when you try to stiff him, I'm not sure if a private loan is backed or not, but in any case if you want to make things right setting up a payment plan and paying them would be a great first step towards that.
And I mention that only because mine were backed by the government not that I tried to stiff them on it, I knew better than to try that. When I lost my job a couple of times I had to defer my payments for 6 months, but they give you deferment time for things like that so it was all good.