Page 1 of 2 12 LastLast
Results 1 to 10 of 15
  1. #1
    Join Date
    Nov 2009
    Posts
    5

    Default Statute of Limitations on Sallie Mae Private Student Loans

    My question involves collection proceedings in the State of: Florida

    Ok, I've read every single thread on here regarding SOL and none of them have any definitive answer regarding SOL for Sallie Mae PRIVATE student loans that do not show up on the nslds website.

    Please, someone, with some credibility, answer plainly, is there or is there not SOL on Sallie Mae PRIVATE student loans that do not show up on the nslds website (meaning NOT a federal student loan)?

    Thanks.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    71,834

    Default Re: Statute of Limitations on Sallie Mae Private Student Loans

    There probably is no statute of limitations on your loan, but you would need to provide more information. For example, even with a purely private student loan, the lender may use a guarantor that satisfies the requirements of 20 USC Sec. 1091(a)(2)(B), such that in the event of default the guarantor can pursue the debt without being affected by state limitations periods. SallieMae typically used HEMAR as the guarantor for its private loans, with HEMAR meeting the requirements of the aforementioned (and below-quoted) statute.
    Quote Quoting 20 USC § 1091a. Statute of limitations, and State court judgments
    (a) In general
    (1) It is the purpose of this subsection to ensure that obligations to repay loans and grant overpayments are enforced without regard to any Federal or State statutory, regulatory, or administrative limitation on the period within which debts may be enforced.

    (2) Notwithstanding any other provision of statute, regulation, or administrative limitation, no limitation shall terminate the period within which suit may be filed, a judgment may be enforced, or an offset, garnishment, or other action initiated or taken by —
    (A) an institution that receives funds under this subchapter and part C of subchapter I of chapter 34 of title 42 that is seeking to collect a refund due from a student on a grant made, or work assistance awarded, under this subchapter and part C of subchapter I of chapter 34 of title 42;

    (B) 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;

    (C) an institution that has an agreement with the Secretary pursuant to section 1087c or 1087cc (a) of this title that is seeking the repayment of the amount due from a borrower on a loan made under part C or D of this subchapter after the default of the borrower on such loan; or

    (D) the Secretary, the Attorney General, or the administrative head of another Federal agency, as the case may be, for payment of a refund due from a student on a grant made under this subchapter and part C of subchapter I of chapter 34 of title 42, or for the repayment of the amount due from a borrower on a loan made under this subchapter and part C of subchapter I of chapter 34 of title 42 that has been assigned to the Secretary under this subchapter and part C of subchapter I of chapter 34 of title 42.
    (b) Assessment of costs and other charges Notwithstanding any provision of State law to the contrary —
    (1) a borrower who has defaulted on a loan made under this subchapter and part C of subchapter I of chapter 34 of title 42 shall be required to pay, in addition to other charges specified in this subchapter and part C of subchapter I of chapter 34 of title 42 reasonable collection costs; and

    (2) in collecting any obligation arising from a loan made under part B of this subchapter, a guaranty agency or the Secretary shall not be subject to a defense raised by any borrower based on a claim of infancy.
    (c) State court judgments

    A judgment of a State court for the recovery of money provided as grant, loan, or work assistance under this subchapter and part C of subchapter I of chapter 34 of title 42 that has been assigned or transferred to the Secretary under this subchapter and part C of subchapter I of chapter 34 of title 42 may be registered in any district court of the United States by filing a certified copy of the judgment and a copy of the assignment or transfer. A judgment so registered shall have the same force and effect, and may be enforced in the same manner, as a judgment of the district court of the district in which the judgment is registered

  3. #3
    Join Date
    Nov 2009
    Posts
    5

    Default Re: Statute of Limitations on Sallie Mae Private Student Loans

    What other information is needed? It's a Sallie Mae private loan in Florida. It does not show up on the NSLDS website. There's nothing in the truth in lending disclosure regarding HEMAR guarantee. The loan was applied for and dispersed to a school that I never attended in 2002. The school received the funds but never cancelled the loan and now 7 years later I find out about it and Sallie Mae is chasing me down for payment. SOL should have passed on this correct?

  4. #4

    Default Re: Statute of Limitations on Sallie Mae Private Student Loans

    If your student loan is not on the FSA NSLD, then it is NOT affected by 20 USC Sec. 1091(a)(2)(B). The statute of limitations applicable is governed by state law and NOT federal law. It may be true that Hemar guaranteed loans under the Federal Student Loan program, but it is only those loans that receive the protection of 20 USC Sec. 1091(a)(2)(B), and only those loans that appear on the National Student Loan Data base. See e.g., Hemar v. Ryerson I and II. Read 20 USC Sec. 1091(a)(2)(B) carefully. It only speaks about those loans getting reimbursed by the DOE under an agreement, not merely the status of a guarantee agency who also happens to do a little business with the DOE while it also has a private student loan business.
    You will still need to review your note, however, to see if there is a "choice of law" provision in another state that has a longer SOL than FL. Normally, a state where the debtor lives is the state where the SOL applies, but some courts feel that they can "borrow" a longer SOL based on choice of law provisions. Hemar v. Ryerson didn't do this, nor did TERI v. Piazza (sorry, but you'll have to look up the citations yourself). The argument appears to be weak, but it's out there. The general rule is to borrow a shorter SOL and use the forum's longer SOL (if the choice of law is shorter) if the forum has significant ties to the cause of action. I know of no reportable case, however, that borrows a longer SOL, but I could be wrong.

  5. #5

    Default Re: Statute of Limitations on Sallie Mae Private Student Loans

    RE: The importance of not being on the NSLD system to infer nonapplicability of sect. 20 USC Sec. 1091:
    Go to Title 20, Education of the USC, Chapter 28, Higher Education Resources and Student Assistance, Sub chapter IV--Student Assistance. There you will find the various parts or "programs" covered by federal student assistance. Go to Part F--General Provisions Relating to Student Assistance where you will find Sect. 1091, but also Sect. 1092b, national Student Loan Data System, which provides:
    (e) Standardization of data reporting
    (1) In general
    The Secretary shall by regulation prescribe standards and procedures (including relevant definitions) that require all lenders and guaranty agencies to report information on all aspect of loans MADE UNDER THIS SUBCHAPTER and part C of subchapter I of chapter 34 of title 42..."

    Therefore, if the loan is not MADE under Subchapter IV, it is not reported under the NSLD system. If it isn't reported under the NSLD system it is not made under for purposes of Sect. 1091 and therefore only the state SOL applies.

  6. #6
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    71,834

    Default Re: Statute of Limitations on Sallie Mae Private Student Loans

    Quote Quoting Rosalynn200
    View Post
    If your student loan is not on the FSA NSLD, then it is NOT affected by 20 USC Sec. 1091(a)(2)(B).
    The omission of a student loan from the NSLD, for example due to a clerical error, won't stop the application of 20 USC 1091a. Where can I find a court that decides these cases by reference to the NSLD rather than the note.
    Quote Quoting Rosalynn200
    It may be true that Hemar guaranteed loans under the Federal Student Loan program, but it is only those loans that receive the protection of 20 USC Sec. 1091(a)(2)(B), and only those loans that appear on the National Student Loan Data base. See e.g., Hemar v. Ryerson I and II.
    In case you missed it the first time around, the question at issue pertains to student loans. Ryerson did not involve a student loan - it involved a "Bar Study Loan Promissory Note". Neither opinion (I or II) mentions the term "student loan" or 20 USC Sec. 1091a. I can agree with you that loans that are not student loans do not qualify for the statute of limitations exemption that Congress has granted to certain student loans, but that's no great insight.
    Quote Quoting Rosalynn200
    You mean, 20 USC Sec. 1091a(a)(2)(B)?
    Yes, reading carefully is important.
    Quote Quoting Rosalynn200
    Read 20 USC Sec. 1091(a)(2)(B) carefully. It only speaks about those loans getting reimbursed by the DOE under an agreement, not merely the status of a guarantee agency who also happens to do a little business with the DOE while it also has a private student loan business.
    The issue isn't that HEMAR isn't a qualifying guarantor. The issue is that the loan in Ryerson was not a student loan. If you think Ryerson supports the argument that HEMAR does not satisfy the requirements of 1091a(a)(2)(B), I suggest that you read it more carefully.
    Quote Quoting Rosalynn200
    You will still need to review your note, however, to see if there is a "choice of law" provision in another state that has a longer SOL than FL. Normally, a state where the debtor lives is the state where the SOL applies, but some courts feel that they can "borrow" a longer SOL based on choice of law provisions. Hemar v. Ryerson didn't do this, nor did TERI v. Piazza (sorry, but you'll have to look up the citations yourself). The argument appears to be weak, but it's out there. The general rule is to borrow a shorter SOL and use the forum's longer SOL (if the choice of law is shorter) if the forum has significant ties to the cause of action. I know of no reportable case, however, that borrows a longer SOL, but I could be wrong.
    That's inaccurate. Statutes of limitation are considered to be procedural laws, and thus for state court litigation the law of the forum normally applies unless the forum has a borrowing statute that applies the law of another jurisdiction. Borrowing statutes typically do apply the shorter limitations period - forbidding litigants from bringing lawsuits that are time-barred in the state where the cause of action originated, even if there is ostensibly time left to sue under the forum's statute - but it's a matter of statute. Federal court analysis can be more complicated, examining contacts between the litigants and competing states to try to determine which state's laws to apply - but that's not a matter of determining which jurisdiction has the shorter limitations period and applying the shorter. The Piazza case held that a choice of law provision would not result in the application of Ohio's statute of limitations to an action brought in a New York court because the Ohio law was procedural in nature, not substantive in nature.

    Again, we're in agreement that loans made to students that are not student loans are not regulated as student loans; but that's not the issue we're discussing.

  7. #7

    Default Re: Statute of Limitations on Sallie Mae Private Student Loans

    The original poster did not suggest a clerical error, but rather the fact that he had a SLM private loan. As per the 9/30/2009 10-Q for SLM, Corporation (www.sec.gov), Sallie Mae offers three types of loans: 1) Private Education Loans, 2) FFELP loans, and 3) Mortgage & Consumer Loans. Here is a description of their lending business found on page 75 of their 9/30/09 10-Q which clearly delineates private loans from FFELP, the latter, not the former being those made under the HEA for purposes of Sect. 1091a:


    LENDING BUSINESS SEGMENT

    In our Lending business segment, we originate and acquire federally guaranteed student loans and Private Education Loans that are not federally guaranteed. Typically a Private Education Loan is made in conjunction with a FFELP Stafford loan and as a result is marketed through the same marketing channels as FFELP loans. While FFELP loans and Private Education Loans have different overall risk profiles due to the federal guarantee of the FFELP loans, they currently share many of the same characteristics such as similar repayment terms, the same marketing channel and sales force, and are originated and serviced on the same servicing platform. Finally, where possible, the borrower receives a single bill for both FFELP and Private Education Loans.



    A bar student loan is not a FFELP loan and that is why the court in Hemar v. Ryerson did not apply Section 1091a. TERI v. Piazza, however, was a “private loan” or a non-FFELP or a non-Direct loan made under the “Law Access Student Loan Program.” Thank you for providing the hyperlink citation, Mr. Knowitall, because if you go to the concurring opinion, you will find that the note stated that, “ The promissory note in issue states that it "will be governed by Federal laws and the laws of the State of Ohio."” If TERI felt that its “private loan” made under the “law access student loan program” was one made under the federal student loan program in which it was seeking federal reimbursement dollars, it would have argued that instead of losing on state SOL grounds. BTW, reading carefully is important. My mistake was to cut and paste Mr. Knowitall’s 1091a’s citation in the first place.

    Finally, From TERI v. Piazza:

    Contrary to the plaintiff's contention, the Supreme Court correctly 514concluded that Ohio's 15-year statute of limitations (see Ohio Rev Code § 2305.06) did not constitute a statute of repose and is not a substantive law for purposes of New York choice-of-law-analysis….. Thus, under New York choice-of-law rules, the Ohio statute is therefore inapplicable to this action which is governed by the six-year statute of limitations set forth in CPLR 213.... In addition, the plaintiff does not receive any benefit from CPLR 202, the "borrowing statute," since "[w]hen a nonresident sues on a cause of action accruing outside New York, CPLR 202 requires the cause of action to be timely under the limitations periods of both New York and the jurisdiction where the cause of action accrued...”


    I will agree that trial court interpretations of conflicts of law/choice of law issues are thorny and unpredictable, but that’s a state issue, not a federal issue. Sallie Mae’s “private education loans” and “Mortgage & Consumer Loans” are governed by state SOLs, its FFELP loans are governed by sect. 1091a. Are we in agreement now?

  8. #8
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    71,834

    Default Re: Statute of Limitations on Sallie Mae Private Student Loans

    If you understand the law, and understand how to read court opinions, the conflict of law and choice of law issues are usually very predictable. There's nothing surprising in any of the three state court cases you've mentioned.

    There is no such thing as a "bar student loan". The words "student loan" appear nowhere in the court opinion at issue. Again, it was a "Bar Study Loan Promissory Note" - an unsecured, personal loan.

  9. #9
    Join Date
    Nov 2009
    Posts
    5

    Default Re: Statute of Limitations on Sallie Mae Private Student Loans

    Does anyone have any recommendations for Attorneys that handle this type of case in South Florida? I've provided everything to Sallie Mae regarding this and they can't say anything aside from, "You just have to pay this loan". I have a letter from the freaking school that says they have no record of me attending, applying, enrolling... nothing!

    I'm tired of dealing with these idiots. The Department of Education can't even discharge the loan because there is nothing under my name or SSN with them. They said to pursue Sallie Mae.

    No payment have ever been made on the loan and it was supposedly opened in 2002. SOL has definitely run out but I need to aggressively fight this now.

    So, again, any recommendations for South Florida attorneys with experience in these cases?

    Thanks.

  10. #10
    Join Date
    Jan 2010
    Posts
    8

    Default Re: Statute of Limitations on Sallie Mae Private Student Loans

    wasteoftime-

    Here in Florida, the SOL for a defaulted private loan would be 5 years. There is a borrowing statute in Florida but the courts here will apply the shorter SOL to prevent plaintiffs from forum shopping.

    As far as BK'ing a private loan, it isn't impossible. I met someone who was able to do it but her loan was from 2000 (went default in 2002) and she was able to have hers discharged because her attorney was able to show that it wasn't a qualified education loan. She also said the loan was never certified by the school which also made it an unqualified education loan. I imagine loans made after 2005 are next to impossible to discharge.

    1. Sponsored Links
       

Page 1 of 2 12 LastLast

Similar Threads

  1. Cosigners: Cosigner Release for Private Student Loans with Sallie Mae
    By GoddessVirage in forum Student Loans
    Replies: 1
    Last Post: 10-19-2010, 12:47 PM
  2. Collection Lawsuits: Statute of Limitations on Private Student Loans
    By KeithDoxen in forum Student Loans
    Replies: 5
    Last Post: 08-16-2010, 06:29 AM
  3. Debt Collectors: Owe 100,000k to Private Student Loans (Sallie Mae)
    By Sick2MyStomach in forum Student Loans
    Replies: 21
    Last Post: 06-03-2009, 02:13 PM
  4. Collection Lawsuits: The Statute Of Limitations For Student Loans
    By Almosthome in forum Student Loans
    Replies: 32
    Last Post: 04-04-2008, 05:34 AM
  5. Collection Lawsuits: Private Loans and Statute of Limitations
    By smooth_86 in forum Student Loans
    Replies: 9
    Last Post: 04-04-2008, 04:41 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
 
Forum Sponsor
Bankruptcy Lawyer
Recover From Your Debt. Free bankruptcy evaluation by a local attorney.




Untitled Document