I've defaulted on my private student loan. Trying to negotiate a payment arrangement with the collection agency.
People do not understand what charge-off means. It does not mean that you do not owe the debt. Nor does it mean that interest will stop accruing. Charge-off is just an accounting term - the debt moves from the good debt to the bad debt side of the creditor's accounts receivable and allows the creditor to write the debt off on its taxes.
To know whether interest can keep accruing, read the terms of your promissory note. Some creditors will stop interest when a debt goes into default, but most will not. My guess is that if you defaulted on your loan, then it does not stop.
Unfortunately, with student loan debt, it is not dischargeable in bankruptcy (absent hardship) and the lender or junk debt buyer can garnish wages. It would be best for you to come to a mutual agreement if you can afford to do that.
While I cannot give you legal advice in this forum, as a general matter the interest your will be charged is governed by the note you signed when the loan was taken out by you. Since you defaulted, most likely the interest rates and penalties are high. You should get this resolve soon.
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Answering your question directly in a word: yes.
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