Re: student loans

Posted by Defaults R' US on October 17, 2000 at 03:22:23:

In Reply to: Re: student loans posted by Bill on October 17, 2000 at 03:18:42:

::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.

: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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