Re: student loans
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Posted by Bill
on October 17, 2000 at 03:18:42:
In Reply to: student loans posted by abe on October 17, 2000 at 03:17:26:
: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?
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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.
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 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.
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.
Read
more about Student Loans
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