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How Long Does a Lender Have to Collect a Defaulted Student Loan

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  • 07-29-2014, 05:50 AM
    driver3115
    How Long Does a Lender Have to Collect a Defaulted Student Loan
    My question involves collection proceedings in the State of: I got a student loan in 1989 to go to truck driving school here it is 2014 and they are trying to collect from me can they do this i live in maryland
  • 07-29-2014, 06:41 AM
    Lehk
    Re: Student Loan
    Student loans are forever.
  • 07-29-2014, 06:58 AM
    brownj12
    Re: Student Loan
    They can absolutely try to collect. The question is whether or not they can sue, if they cannot sue, and the account has been inactive long enough that it has fallen off your credit report, then while they can continue to call you or send letters they have little real ability to collect any money.

    Who issued this loan? Was it part of any federal loan program?/
  • 07-29-2014, 08:22 AM
    Mr. Knowitall
    Re: How Long Does a Lender Have to Collect a Defaulted Student Loan
    You're speaking of a federally guaranteed student loan?
    Quote:

    Quoting brownj12
    View Post
    ...if they cannot sue, and the account has been inactive long enough that it has fallen off your credit report, then while they can continue to call you or send letters they have little real ability to collect any money.

    The key part of that statement is "if they cannot sue". If it's a guaranteed loan and not subject to a statute of limitations, they can sue. If it's not then, depending on the state and date of default, the statute of limitations may have run.
  • 07-29-2014, 11:12 AM
    driver3115
    Re: Student Loan
    Yes i belive so

    - - - Updated - - -

    they are saying they are going to put a judgement on me
  • 07-29-2014, 12:13 PM
    brownj12
    Re: Student Loan
    Quote:

    Quoting driver3115
    View Post
    Yes i belive so

    - - - Updated - - -

    they are saying they are going to put a judgement on me

    If it is a Federally Guaranteed loan, then they can sue, and will likely win.

    You may want to contact them and discuss payment options if they are still willing to due so. If they sue they will win, and you may end up repaying this through wage garnishments.
  • 07-29-2014, 07:23 PM
    driver3115
    Re: Student Loan
    Quote:

    Quoting Mr. Knowitall
    View Post
    You're speaking of a federally guaranteed student loan?

    The key part of that statement is "if they cannot sue". If it's a guaranteed loan and not subject to a statute of limitations, they can sue. If it's not then, depending on the state and date of default, the statute of limitations may have run.

    Quote:

    Quoting brownj12
    View Post
    If it is a Federally Guaranteed loan, then they can sue, and will likely win.

    You may want to contact them and discuss payment options if they are still willing to due so. If they sue they will win, and you may end up repaying this through wage garnishments.

    Me to say after 25 years they can still sue me for the loan:eek:
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