SOL on borrowed money for school

Date: Thu, 04/06/2006 - 18:49

Submitted by franklinfamily03
on Thu, 04/06/2006 - 18:49

Posts: 37 Credits: [Donate]

Total Replies: 3

SOL on borrowed money for school

This question is not really about a federal student loan, but of a rather odd situation. In 1996 my husband was in college and lost his finacial aid. To allow him to continue attending school, his mother agreed to borrow against her retirement benefits to pay his fees. She did not pay but he was allowed to finish the semester. In 1998 we began receiving threatening letters from the school stating that he owed them $3500. We could not pay them due to circumstances... we have never been in great financial shape. After a few years we never heard from them again. Until yesterday. They called wanting to know when he could make a payment. When he told them that he could not afford anything at the moment they became rude. Can they do anything? It is not a loan through the government... in fact it is not a loan at all, but an unpaid balance on a student account.

I'm not positive but I think the age of the debt comes into play

I'm not positive but I think the age of the debt comes into play here. I would ask around here everyone is great very helpful. From what I've learned so far, you can send a letter to have them validate the debt. Anyone can feel free to correct me. :)

lrhall41

Submitted by vcarrigan on Thu, 04/06/2006 - 19:22

( Posts: 16 | Credits: )

First thing, they are withholding his credits he earned in any c

First thing, they are withholding his credits he earned in any classes. So if he tries to go back to school and transfer those credits, he can't until he pays the school. Additionally if he has finished his course work, they will not convey his degree until he has paid up. Other than that, its a unsecured debt, and would be handled according to prevailing state and federal laws.

lrhall41

Submitted by LCW on Fri, 04/07/2006 - 05:13

( Posts: 1151 | Credits: )

Yeah, I forgot about that. I had a student loan placed on a chp

Yeah, I forgot about that. I had a student loan placed on a chpt 13 back in 89 and just recently got it all sorted out and my transcript released. It doesn't matter what from of money you owe the school, they apparently own your info until you can proove it's been paid. I had to go through EdFund and now I have a letter from them that states I do not owe any money to any schools or student loan agencies. I guess I can get my degree now. You're never too old to go back to school.

lrhall41

Submitted by vcarrigan on Fri, 04/07/2006 - 06:22

( Posts: 16 | Credits: )