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  1. #1
    Join Date
    Feb 2008
    Posts
    1

    Default TERI Loans Under "Access Group Program"

    THE QUESTIONS:
    1 - Which law governs my TERI loans?
    2 - What is the statute of limitations on TERI private loans in the state of Ohio and New Jersey?

    SERVICE & THE ACTION:
    Service of process is dated 2-20-08, but was made to my wife at our marital home on 2-23-08. The action seeks recovery of four promissory notes, dated 12-1-97, 7-21-98,
    12-13-01, and 2-13-01.

    THE DOCUMENTS:
    The docs identify TERI as the guarantor of private education loans under the "Access Group Program." The loan docs state, "the provisions of this promissory note will be governed by federal laws and the laws of the state of Ohio, without regard to conflict of law rules" and that "in this promissory note, acts or practices by [the lender] which are or may be permitted by applicable law are permitted by New Jersey law ... unless prohibited by New Jersey law."

    Can anyone offer some assistance in decoding all of this? Thanks.

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

    Default Re: TERI Loans Under "Access Group Program"

    If the TERI loans were federally guaranteed under their agreement with the Secretary of Education, as is usually the case, no statute of limitations applies. If you think the statute of limitations may apply, you can raise that as a defense when you answer the complaint and see how the court rules.

  3. #3

    Default Re: TERI Loans Under "Access Group Program"

    Generally speaking, the state you were served would be the state statute of limitations to use. For example, in Education Resources Institute, Inc. (TERI) v. Piazza, 17 Ad 3d 513 (2005), TERI lost on its argument that the Ohio 15 year SOL should apply versus the New York 6 year SOL, the state where the defendant resided. The court stated that SOL was a procedural, not substantive law issue and therefore was not bound to the contractual choice of law. The court also stated that the federal statute pre-empting state SOL did not apply. You might also want to read the reasoning in Hemar v. Ryerson, 108 S.W.3d 90 (2003) and its later appeal in 2006. In that case the co-signor was sued and the longer 10 year SOL of Missouri, where the co-signor being sued resided, was used versus the South Dakota 6 year SOL, even though South Dakota was the choice of substantive law as per the contract. No mention was made where the borrower resided or why the borrower was not being sued. It appears your loan documents attempt to make both Ohio and New Jersey the choice of law.
    If your loans, however, are listed on the National Student Loan Database that is maintained by the Dept. of Ed's, Federal Student Aid (FSA), then they are probably federally guaranteed student loans and those most likely do not have a SOL. Definitely go see an attorney for help.

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