Private Student loans after BK discharge...

[Anonymous]

Hi Everyone,

After filing BK7 and getting discharged, I'm left with significant private student loan debt (around $100,000).

My first missed payment was 2/2009 and charged off 10/2009; apparently a claim was filed with the guarantor, First Marble Head.  I was discharged from BK 10/2010, and have not heard from FMH since.

My questions are:

1.)  Are private student loans subject to Statute of Limitations?  I'm in CA... how many years do they have to file suit?

2.)  What is my best option to try and handle the private student loan if SOL doesn't apply.  Should I try to negotiate a settlement?  If so, how successful do you think I'll be?

3.)  The student loan shows up on my credit report as: Closed/Charged Off/$0 balance.  Will it automatically fall off my credit, if so, when?

Thanks to anybody who could shed some light on this for me, I really appreciate it

[carolina98]

That's interesting. I've seen 2 BK attorneys and both say there's no way student loans, private or government, go away and I'm still liable for $60 K in student loans (govt and private) even if I file. BK. The only way to get rid of student loan debt is if you're disabled and the court approves hardship. Fortunately, I'm healthy. I'll gladly take the student loans.

[IOBA]

As I understand it, that student loan does not have a SOL -- period. 

Eventually, someone will find you and ask for the money.

It's probably better for you to take the initiative and start making payments, if you can afford to do so.  

They can report negatively for 7/7.5 years on your credit report.   But on the flip side, they can continue reporting positively 10 yrs after the loan has been paid off.   Since the loan was probably sold/sent to collections, the OC will probably not report it anymore.

[Anonymous]

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@Anonymous wrote:

Hi Everyone,

After filing BK7 and getting discharged, I'm left with significant private student loan debt (around $100,000).

My first missed payment was 2/2009 and charged off 10/2009; apparently a claim was filed with the guarantor, First Marble Head.  I was discharged from BK 10/2010, and have not heard from FMH since.

My questions are:

1.)  Are private student loans subject to Statute of Limitations?  I'm in CA... how many years do they have to file suit?

2.)  What is my best option to try and handle the private student loan if SOL doesn't apply.  Should I try to negotiate a settlement?  If so, how successful do you think I'll be?

3.)  The student loan shows up on my credit report as: Closed/Charged Off/$0 balance.  Will it automatically fall off my credit, if so, when?

Thanks to anybody who could shed some light on this for me, I really appreciate it

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1.  Yes.  Almost everything is subject to the statute of limitations and student loans are not an exception.  The question is what the SOL is in your state and what events trigger the SOL when dealing with student loans.

2.  N/A

3.  The reporting of student loans is a bit dfifferent than other consumer credit accounts.  There are approximately 4 or 5 trigger events which determine when the 7-year credit reporting time period commences and your lender can choose the one which best suits their needs.  One such trigger event is the date that the lender is reimbursed by the guarantor for the defaulted student loan.  Assuming that the entity you mentioned is the guarantor and they were reimbursed in 10/2009, the credit reporting time period of 7 years would commence on that date.