I live in PA and thought I had consolidated all of my student loans about 5 years ago. Now Sallie Mae and another collection agency for TERI are saying that I have private student loans that were not consolidated. They are not eligible to be consolidated into my federal consolidation loan because they are private loans.
My last payment to Sallie Mae and the other were over 4 years ago and the statute of limitations in PA is 4 years. They are claiming that there is no statute of limitations (SOL) on student loans. I agree that there is no SOL on federally guaranteed student loans but these are private. I checked the federal website nslds.com and it shows all of my federal student loans as being consolidated.
I read the federal statute regarding no statute of limitations, section 1091a. Under paragraph (a)(2)(B), it states: a guaranty agency that has an agreement with the Secretary under section 1078 (c) of this title that is seeking the repayment of the amount due from a borrower on a loan made under part B of this subchapter after such guaranty agency reimburses the previous holder of the loan for its loss on account of the default of the borrower. Part B is for stafford loans (subsidized and unsubsidized) and plus loans. There are limits to the amount that are federally insured (Section 1075).
As I read it, my private loans were not made under this subchapter as they are not eligible to be consolidated into my federal loans. Since my last payments were over 4 years ago, I believe that the SOL has run. They insist that there is no SOL and to make a small payment while we work this out. I know making a payment will start the clock again on the SOL so I told them forget about it. I know that private student loans are not dischargable in bankruptcy but I am not filing for bankruptcy.
I am the point of telling them to sue me because I believe the SOL has run and will not pay them. I already have over 125k know and 25 more years to pay. Is there anything I am missing? cases? other statutes?