Re: student loans

Posted by win brown on November 22, 2001 at 16:12:42:

In Reply to: Re: student loans posted by Defaults R' US on October 17, 2000 at 03:22:23:

: ::I have students loans not paid for longer than 10 years. This
: ::loan stayed in my credit report for seven years and erased. Can
: ::the goverment report it back to the credit bureau for other
: ::seven years? I understand the statute of limitation expired on
: ::these loans? What are my possibilities for the goverment
: ::enforcing payment?

: :When student loans first commenced they came under the "Statute of
: :Limitation" just like any other similiar loan. Later, however, the
: :U.S. Congress declared all student loans to be exempt from any
: :limitations. It put a stop to anyone trying to use that as a
: :defense for not paying.

: Right after the statue of limitations was
: removed from student loans, the student
: loan companies started going after some very
: old debts. Penalties and intrest add up
: rather quickly on a student loan that was
: defaulted 20 years ago.

: :In addition, Congress has given the Dept. of Education authority to
: :collect a defaulted student loan similiar to the authority of the
: :Internal Revenue Service. They once were required to take people
: :to court and obtain a "judgment"....but not anymore. Under the new
: :rules, they can grab any tax rebate you have coming, go after your
: :wages, and anything else they can find.....all without "due
: :process". Also, make sure you don't take a job with the federal
: :government, collect social security or other benefits, or work on a
: :goverment contract...because they can grab your pay in a heartbeat

: they still need a judgement for some things
: like seizing bank accounts, but not for
: garnishing 10% of wages or grabbing tax
: returns.

: :A few years back, Congress became very upset with the loss of
: :taxpayer dollars on defaulted student loans.....and they not only
: :ordered the Dept of Education to crack down, but they gave them the
: :teeth to do it....and demanded progress reports on how well they
: :were doing.

: :As things stand, you'll be subject to collection efforts all of
: :your life and you'll get hit just when you think they've forgotten
: :all about you......and don't be surprised if it lands on your
: :credit report again.....because the rules for student loans are
: :different and the arm of the Dept. of Education has become quite
: :powerful.
Where can I find information on the new laws that initiate those changes for student loans?
thanks
: :It's like what they say about undertakers, "they'll get you sooner
: :or later"........and the accrued intrest is building every day.
: :The only escape is "permanent disability" or "death". It's written
: :off in either circumstance.....upon submission of proof.

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