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    Default Federal Student Loan Bill Sent Many Years Later - with Interest

    My question involves collection proceedings in the State of:

    Recently, we received a family member's loan bill from over two decades ago. After contacting the college, they said that our address wasn't updated. This is rather strange because we've had plenty of alumni donation solicitation letters over the past decade. Are we at fault for miscommunication between their departments? Anyway, it was a federal loan. The original amt. was minuscule, but over the two decades in which we were not aware of it existing at all, it had ballooned with interest. Going forward, what are our options? Do we ignore it? What happens if we don't pay? Does the statute of limitations apply? We wouldn't want to start the clock again if it has. The laws declaring federal loans to be exempt (1998 from another site, I believe) were passed after the statute of limitations had passed on this. Does it mean that the 1998 law will stand or is it only loans taken after that date? We didn't even get a bill until the loan was turned over to a collection agency. Considering our income, the new total isn't a paltry sum.

    If anyone could help me, I would be very grateful. Also, it would be great if I could be referred to specific passages of law relevant to this case.

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