default student loan paid in full vs rehabilitation

[filthyrich]

I have a student loan that is in default. it is a little over a thousand dollars and paying it all off isnt out of the question. I have also heard about student loan rehabilitation process, which seems like a good option because theoretically your debt gets taken off default eventually, you create a positive credit situation when the loan gets purchased back and you dont pay a lot at once. but from what i have read on forums is that the default is not removed from your record. I was wondering if anyone has had any experience with this, and can give me advice on what my best option is? The way i look at it is if the default stays either way, I should pay in full close it out and create as much positive credit transactions as possible to distance myself from the bad debt asap. But if it is possible to get the default off my record it would be worth it to go through the 9-12 months of rehab payments then start making payments to the original creditor. I could be (and probably am) wrong in my thinking so please advise. thanx in advance

[30daylate]

I am not sure what happens with student loans when you default. I imagine it would be exactly like a credit card or other loan. If you pay it off it still stays on there. I think you should try calling and see what they can do. Pay for delete might not work the same way since you can't really threaten non-payment since there is no SOL to my knowledge for student loans. I think that in this economy if you explain you fully intend to pay it off but you need to have it taken off your credit report, they should probably be willing to work with you.