Student loan creditors such as Nelnet are required by law to report accurate information to credit agencies. This makes dealing with late or defaulted student loans much different than other accounts. Basically, regardless of if you have consolidated, or even undergone a rehab program, the record will remain on your credit report for 7 years.
You can read why student loans cannot be included in a bankruptcy on the ed.gov website for the specific legal mumbo jumbo.
Most other accounts CAN be negotiated
…if you go about it the correct way. I wrote about the best way to negotiate charge offs, late payments, and collections in this article about removing negative credit report entries.

{ 9 comments… read them below or add one }
What do you mean by “rehab program”????
Loan Rehabilitation is a program offered by the government for people who have defaulted on their student loans… see this website for more info: http://www.ed.gov/offices/OSFAP/DCS/rehabilitation.html
Ah, I see. Thanks Ryan!
I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future.
Nice information. I think, Students suffering from bad credit loans should find a co-signor in advance who knows them, trusts them and is willing to sign a promissory note with them. Also make sure the co-signor has very good credit.
I have tons of blog themes and have not seen one like yours before, I like it.
The occasion is exactly what it sounds like. Part of the problem that has been created was due to the sub prime crisis that was created when major banks started to issue lots of risky credit, and then insured those loans with credit default swaps. The bank doesn’t care about your situation. I, affectingly, have to be necessitated to sympathize with mortgage refinance online.
Copy and Paste buy lowerest price 20-40% @ Amazon.com
dealofday.us/sitemap.php?page=2
Actually, student loans prior to the passage of this bill in 1998 were dischargeable and can be fought. In fact, the US Supreme Court recently heard a case in 2010 and found the student in question, who included his school loan in bk in the early 90′s not responsible for repayment of accrued interest (see below)
Bankruptcy–Dear Colleague Letter GEN-95-40, dated September 1995
A borrower may also have his or her loan discharged in bankruptcy.
A federal student loan is not dischargeable in bankruptcy unless
- the loan has been in repayment for at least 7 years, excluding any periods of deferment or forbearance (“suspended repayment”) or
- the bankruptcy court has determined that repayment of the loan would cause an undue hardship to the debtor and his or her
dependents.
_______________________________________________
http://www.abajournal.com/mobile/comments/supreme_court_rules_for_student_seeking_discharge_of_loan_debt/
Supreme Court Rules for Student Seeking Discharge of Loan Debt
By Debra Cassens Weiss
Mar 23, 2010, 10:00 am CDT
The U.S. Supreme Court has ruled on behalf of a litigant seeking to discharge the interest on his student loans in bankruptcy.
In a unanimous opinion, the court said the bankruptcy court could discharge the debt even though the former trade school student, Francisco Espinosa, had failed to allege undue hardship, SCOTUSblog reports.
The opinion by Justice Clarence Thomas said the bankruptcy judge should not have approved the bankruptcy plan absent proof of undue hardship, but the error was not serious enough to void the agreement, the Associated Press reports.
The lender did not object to the plan before its approval.
The lender later sought to void the bankruptcy judge’s order under Federal Rule of Civil Procedure 60(b)(4). But “Rule 60(b)(4) does not provide a license for litigants to sleep on their rights,” Thomas wrote in his opinion for the court.
“Where, as here, a party is notified of a plan’s contents and fails to object to confirmation of the plan before the time for appeal expires, that party has been afforded a full and fair opportunity to litigate, and the party’s failure to avail itself of that opportunity will not justify Rule 60(b)(4) relief.”
The opinion (PDF) is United Student Aid Funds v. Espinosa.