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  1. #1
    Join Date
    Oct 2012
    Posts
    5

    Default Statute of Limitation on Private Student Loan

    My question involves collection proceedings in the State of: Mississippi

    I recently received a letter in the mail regarding a private student loan issued in the state of Mississippi from January 2003. I fell on financial hardships back in those days and couldn't afford to pay back the loan. It was reported on my credit and dropped off of my credit report in 2010. This recent letter stated that I not only owed the original $2000 for the loan, but an additional $1971 in collection fees and interest. I sent a response by registered mail stating that the collection agency was attempting to collect a "zombie debt" from me and asked them to cease and desist all communication and harassment. I received another letter from the collection agency that was forwarded from the University of Mississippi (original creditor) stating that while the statute of limitations for debt in the state of Mississippi is 3 years, it doesn't apply to state or political institutions (Article 4, Section 104 of the Constitution of the State of Mississippi "Statutes of limitation not to run against state and political subdivisions.")
    Here are my questions. How should I proceed? I have read that they can not place this back onto my credit report once it has fallen off, unless I begin making a payments. In which case, will this be listed as a collection account? I made some really stupid mistakes when I was younger and have managed to repair my credit later in life. Since the University of Mississippi IS a state institution, does the debt NOT fall under the statute of limitations? Also, since I live in the state of Alabama (and have for over 5 years), would the statute of limitations for my state of residency apply?

    Any help in this matter would greatly be appreciated.

    Thanks.

  2. #2
    Join Date
    Sep 2005
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    Behind a Desk
    Posts
    98,846

    Default Re: Statute of Limitation on Private Student Loan

    It's up to you to decide how to proceed. You can pay the money you owe, you can choose not to pay the money you owe and see what steps they take to collect it, you can attempt to negotiate a settlement....

    The statute of limitations is only relevant if they sue you. If you owe the money, they can ask you to pay the money you owe until the end of time.

  3. #3
    Join Date
    Oct 2012
    Posts
    5

    Default Re: Statute of Limitation on Private Student Loan

    I appreciate your input but I am still cloudy on the other points I mentioned in my post.
    Can they legally place this back onto my credit report once it has fallen off?
    If I agree to a payment plan, will it be added back on?
    If they decide to sue, which state's statue of limitations apply? Mississippi's or Alabama's (current state of residency)?

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