Student Loan Debt

Hi Ginny,

Most of the student loan issues are dealt by federal laws and there is no statute of limitation for federally funded loans. SOL of your state does not apply on student loans.

So try to discuss with your loan holder regarding this matter and work out some plan for repayment. As your loan is already defaulted, you will lose some repayment options, still a negotiation can solve your problem.

[quote=Ginny]These are not loans that I took out however, under these loans, the information shows one payment. [/quote]
You can ask for a validation if you find any discrepancy in their demand.

Regards
Bryan

I should have mentioned that the loans are Law Access Loans (LAL) which are private loans - although I think they are guaranteed by the federal government. Does this make any difference? Thanks for you help and thoughts on this.

Ginny,

There is controversy regarding the statute of limitation for private student loans. Some experts are saying that private student loans are like general loan taken from any bank or a financing company. In that case SOL is applicable to private student loans.

Any lawyer from your state would be the best person to guide you in this matter.

Regards,
Bryan

It sounds like you defaulted on the loan in 2000 and then your guarantor paid the claim, resulting in a new trade line. The SOL starts after the claim paid date. So they filed the judgement within the 6 year Virginia SOL.

For the past 20 years the IRS has kept my refunds due to me because of an old student loan. I was informed this week that now my wages were to be garnished for this same debt. I would think that after 20 years of keeping my tax returns my debt should be settled. What can I do or who could I contact about this.

not necessarily, interest still gets added on daily. You tax return probably doesn't even begin to cover the late interest.

You should probably pull up your credit report and see who's reporting on your student loan and then call them to get a balance.

You are more than likely with the US Department of Education. You should know as you agreed to keep your guarantor informed of your current address...mail is sent out regularly.

Being an old loan, you probably have a higher interest rate. Your interest accrues and then capitalizes on itself. Plus collection and subrogation fees. Plus you pay for the privelege of having your taxes seized.