If they charge the loan off, they will send it out to a collection agency or an attorney for collection. Then the telephone calls will start again. They can also take you to court regarding non-payment of the debt, but sometimes it is better that they do so because the court will usually insist upon a payment plan that you can afford on this, rather than telling you that you must pay this amount or you must pay that amount. Regarding future student loans, this can hurt your chances for them because they will check your credit in processing federal student loans -- although they do not give as much weight to credit reports as private lenders seem to do. If you find yourself in this situation, all you can do is pay Chase (or whoever they send it to ) what you can afford to pay and then let the school know of the circumstances of this loan if it is brought up by the financial aid office of the school you will be attending.
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If you are talking about all of the recent bail out monies that have been given to private lenders, there are no programs in place to help students in debt with these lenders at this time (the major focus has been on preventing foreclosures). However, if you get a federally guaranteed loan in January, you may be able to speak to them about rolling in past due amounts with the new loan to give you one consolidated payment. But, in order to take advantage of any federal consolidation programs all or a portion of the loans that you have must be federally subsidized loans.
You can certainly call them and see if they are willing to stop the charge off if you pay them what they are asking for within the next week or so -- but you want them to agree to some kind of a payment plan with you before you give them any more money -- because if you do not, then they will continue to harass you and will probably charge it off anyway.
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