Re: 15 yr defaulted student loan haunting me now, worried about home.

Posted by Oliver Wendell Holmes, Jr. (66.155.160.81) on December 07, 2003 at 21:26:56:

In Reply to: Re: 15 yr defaulted student loan haunting me now, worried about home. posted by Why Chat on August 30, 2002 at 15:01:49:

Why Chat is wrong! A defaulted student loan can only be reported for 7 years after default, unless the debtor enters into a repayment program and then defaults again. (link and text of statute below) THIS DOES NO MEAN THAT THE TIME FOR THE GOVERNMENT TO SUE YOU OR GARNISH YOUR WAGES HAS PASSED! THE US GOVERNMENT CLAIMS THAT THERE IS NO STATUE OF LIMITATIONS FOR THE DEPT OF EDUCATION TO BRING SUIT AGAINST YOU! CONSULT A LAWYER IF YOU OWN PROPERTY.

(f) Duration of authority Notwithstanding paragraphs (4) and (6) [1] of subsection (a) of section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)(4), (a)(6)), a consumer reporting agency may make a report containing information received from the Secretary or a guaranty agency, eligible lender, or subsequent holder regarding the status of a borrower's defaulted account on a loan guaranteed under this part until -

(1) 7 years from the date on which the Secretary or the agency paid a claim to the holder on the guaranty;

(2) 7 years from the date the Secretary, guaranty agency, eligible lender, or subsequent holder first reported the account to the consumer reporting agency; or

(3) in the case of a borrower who reenters repayment after defaulting on a loan and subsequently goes into default on such loan, 7 years from the date the loan entered default such subsequent time

20 U.S.C. Sec. 1080a(f):
http://www4.law.cornell.edu/cgi-bin/htm_hl?DB=uscode&STEMMER=en&WORDS=fair+credit+report+act+&COLOUR=Red&STYLE=s&URL=/uscode/20/1080a.html#muscat_highlighter_first_match

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