Collection of a 20 Year Old Student Loan
I have been contacted by Portfolio Recovery Associates who are trying to collect on a loan that is 20 years old, the company who extended the loan went out of business, and the company also sent me a letter stating that I would no longer be required to pay the debt (was forgiven) because they were out of business. PRA will not provide a copy of the contract they claim they have . . . and I have nothing because it's been so long. Does the statute of limitations apply? It wasn't a federal loan or Dept. of Ed because I have received federal financial aid and other student loans within the last 10 years, and have received nothing regarding past loans until that company-PRA-contacted me. Besides telling them not to call, is there anything else I can do? :wallbang:
Re: Collection of a 20 Year Old Student Loan
Is your loan listed in the NSLDS?
Its absence doesn't prove that the loan is exempt from the statute of limitations, but its presence would suggest that it is exempt. It's unfortunate that you don't have a copy of the note.
Given the unusual background facts you present, I am left wondering if the loan documentation still exists and is available. You do have the right to instruct a collection agency not to contact you, although they can still sue you.