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Old 09-24-2012, 10:52 AM
 
74 posts, read 134,084 times
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I defaulted on my student loans 25 years ago and they sent me all kinds of notices in the mail and a few phones calls and then the calls and letters stopped. I don't see it on my current credit report.

Now 25 years later, I wonder I wonder if someone is going to track me down and try to collect the money I owe and add thousands in fees and interests and tell me they are going to sue me and take it out of my bank account or out of my paycheck etc.

I know in typical debts there is a seven year or so rule, if they can't collect in a certain period of time then they can't legally get the money from you anymore. Is this true in student loans?
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Old 09-24-2012, 02:04 PM
 
882 posts, read 2,082,666 times
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What kind of statue should they erect? (kidding... I misspell on the interwebs far too often)
It depends - on whether or not it was federally backed/private/$$$ figure/state statute of limitations & more. Not showing up on your CR (7 year limit) doesn't mean anything.
I'd get legal advice. Good luck!
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Old 09-24-2012, 03:10 PM
 
Location: Maryland's 6th District.
8,358 posts, read 25,149,448 times
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Well, the laws have changed since, but it does depend on who issued the loan. If the lender was say a bank, or an entity that issues various types of loans, they collect full price (insurance) if you default. Plus they also retain the right to sell your loan to a collection agency. If the lender was an entity that specifically deals with student loans, then they too receive full payment, but will apply that money to fund other student loans.

So, what happened? The no-bankruptcy-for-student-loans went into effect in 2000, I believe. It is also to my knowledge, if I remember correctly, that a) the statute of limitations for student loans is declared by the specific State[s], and, b) that only Federal student loans are non-dischargeable.

My guess is that however owned the rights to your loan collected their insurance money and gave up trying to collect from you. I know a few people who worked for collection agencies, and believe me, they have the means to find you if they really wanted to. Personally, I would let it go. If anything was going to happen it would have happened by now. However, that is not legal advice, and, I would also consult a lawyer who specializes in loans/lending if I was really worried about it. Another thing, do not ask your lender about it.
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Old 12-11-2013, 11:14 PM
 
1 posts, read 11,587 times
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When your debt is sold to another collector for a student loan it now becomes private therefore statute of limitation rules should apply
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Old 12-12-2013, 09:37 AM
 
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,096 posts, read 80,136,113 times
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I still get calls from collectors looking for a former employee that defaulted on a student loan back in 1995.
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Old 12-12-2013, 03:55 PM
 
210 posts, read 154,792 times
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Um, student loans are a different animal, altogether. Not dischargeable in bankruptcy, and garnishments can be attached to your SOCIAL SECURITY payments. I'd advise you to find a way to pay them, or else they're going to follow you until you die.

-signed, an accountant employed by a collections agency
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Old 12-13-2013, 09:16 AM
 
Location: Maryland's 6th District.
8,358 posts, read 25,149,448 times
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Quote:
Originally Posted by mcsangel2 View Post
Um, student loans are a different animal, altogether. Not dischargeable in bankruptcy, and garnishments can be attached to your SOCIAL SECURITY payments. I'd advise you to find a way to pay them, or else they're going to follow you until you die.

-signed, an accountant employed by a collections agency
Sorry, but you are partially wrong. Private student loans can be discharged in bankruptcy and/or by other means. The lender can also elect to not collect on the loan and settle for the insurance pay-out instead, as you should be well aware.

But yes, collections can garnish wages, tax returns, take you to court, etc.
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Old 12-13-2013, 09:19 AM
 
Location: Maryland's 6th District.
8,358 posts, read 25,149,448 times
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Quote:
Originally Posted by Bluebird31 View Post
When your debt is sold to another collector for a student loan it now becomes private therefore statute of limitation rules should apply
I don't think the Fed. Gov. sells student loan debt to debt collectors.
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Old 12-13-2013, 01:42 PM
 
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,096 posts, read 80,136,113 times
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Quote:
Originally Posted by K-Luv View Post
I don't think the Fed. Gov. sells student loan debt to debt collectors.
There are and have been student loans available that were not federally insured. Those are subject to the normal collection/reporting regulations the same as a credit card or car loan.
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Old 12-14-2013, 05:33 PM
 
Location: Arizona
3,763 posts, read 6,673,726 times
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Quote:
Originally Posted by K-Luv View Post
Sorry, but you are partially wrong. Private student loans can be discharged in bankruptcy and/or by other means. The lender can also elect to not collect on the loan and settle for the insurance pay-out instead, as you should be well aware.

But yes, collections can garnish wages, tax returns, take you to court, etc.
Private loans can be discharged if you can prove undue hardship which basically boils to down to some kind of permanent disability, or your dead or dying, same with federal loans. Some courts may use the brunner test to determine undue hardship. The law was changed in 2005 because students were "abusing the system", yet there is no proof of this. The law was changed so they would reap massive profits plain and simple. Private student loans have little options besides forbearance and deferment, you can also consolidate if your debt is less than your income.

To answer the OP's question, no there is no statue of limitations on any kind of student loan. You can enroll in public loan forgiveness or something similar that will discharge any remaining debt after X amount of years but whether you have the loan ten days or ten years there is no statue.

The Consumer Financial Protection Bureau as of March 2014 will begin overseeing all student loan lenders, including the corrupt Sallie Mae which to me is a step but a bs step.

CFPB to Oversee Nonbank Student Loan Servicers > Consumer Financial Protection Bureau

If you are having trouble paying you can look into chapter 13 or contact a student loan lawyer who may be able to negotiate your debt.
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