School Loan on collection will it fall of after 7 years?

[y0rascal]

well this is the situation... my wife had applied for a school loan through the government and her mom put her down as a us citizen. 60 days into her schooling the school advises her that she needs to provide proof of citizenship which at the time she did not have. they gave her 30 days which was not enough time for her citizenship. her mom is a us citizen which makes her a citizen. well i guess the government cut the funding for her and the school advised her that she owes $2,545.00. the debt was sold to a CA. CA contacted her once and left it at that. this was not any regular college it was one for a program as she was training for a medical assistant which now she does not want to do that field. we have proof of her citizenship now as she has her US passport but of course the school will not take it now as she was informed when she gets it to bring it in even after the 30 days she will just not be enrolled into the program. the school was willing to work a deal is she comes back they will take it off, but she does not want to go back. my question does this debt fall of after 7yrs? or because it is a school loan it is sticking on there till it is taken care off? i have also thought bout settling it or maybe getting an attorney involved as it would be cheaper then paying the actual debt. she was legally a citizen at the time just did not have the proof. the good news is so far this ca only reported to equifax, we pulled her experian credt report and it is not on there. her EQ score is 639 as she has a short credit history and the collection is hurting her. any help or advice is appreciated... i will also add that the debt was reported by the CA in 2005 so we got about another four years... but i am rebuilding my credit as i have more history then her.. Message Edited by y0rascal on 11-28-2007 06:42 AM

Message Edited by y0rascal on 11-28-2007 06:45 AM

[Anonymous]

Well there id not SOL on any type of student loans-
At some point they will either sue or garnish wages/Tax refunds.

This is a weird situation - I would talk to Dept of Education first- ed.gov and find the phone number
They should be able to verify if any of this information told to you by the school is true.

[y0rascal]

excuse my ignorance but i have tried searching what does SOL stand for??? anyone got a phone number? i tried searching but no luck... Message Edited by y0rascal on 11-28-2007 06:56 AM

Message Edited by y0rascal on 11-28-2007 06:59 AM

[Anonymous]

SOL= statue of limitations
How long someone can sue you-

DOE
http://www.ed.gov/about/contacts/gen/index.html

* Questions about the Department (ED) or NCLB

Have a question? Please see our frequently asked questions (preguntas y respuestas frecuentes).

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Washington, DC 20202

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@y0rascal wrote:
excuse my ignorance but i have tried searching what does SOL stand for??? anyone got a phone number? i tried searching but no luck... Message Edited by y0rascal on 11-28-2007 06:56 AM

Message Edited by y0rascal on 11-28-2007 06:59 AM

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[y0rascal]

should i still consider an attorney?

[Anonymous]

Talk to the DOE first-

[y0rascal]

well i spoke with dep of ed and they can't do nothing nor verify anything... the lady recommened me asking for a discharge. i then spoke with the school finanical services who said it is out of their hands and to speak with collections.  i then spoke with collections and asked if i could get a discharge form..... the collections lady was like a what??? then i had told her my wife's situtation and recommened me to the head financial lady at the school in tampa, florida.  i spoke with her and she was not helpful.  she said that she cut my wife a break, because she had signed for a 13k loan, but they only charged her for 2572 of it.  i was like yea because she only attended part of the semester cause your people said if she does not provide proof she does not get anymore grades for school work.  all in all i asked her cause she did talk about how this collection is 3 years old i asked her if it would fall off in 7 years.... she advised that it will fall off in 7 or 10 years she was not sure.  i then asked for settlement and she first said $2100.00, i told her no, she then said $1900.00 and stuck there for awhile.  i then said no and she advise that she will push $1800.00 but doesn;t think it will get approved.  she walso wanted me to pay it in 1-2 payments like i have that much money laying around to just pay the school.  i then told her i will call her later.... now what should i do from here? should i wait out four more years and hope it expires? or work on a better settlement??? i might try to work a settlement when i get my tax returns.... but i only offered to pay $1000.00 total and she was like yea pay $1000.00 now and the rest next month.. she tried to pull a fast one but i caught it....

what should i do now? i am stuck..... also about the whole citizenship.. the lady at the school said that for my wife to provide her parents citizenship was not good enough and she needed hers... and now it is too late to prove the citizenship....  i need advice on my next move thanks...

[y0rascal]

this is what it states on her cr.....   Collections

A collection is reported on your credit report when a business turns over an unpaid account to a collection agency. One collection can hurt your FICO® score and several collections can severely hurt your FICO® score.

Collection on debt to: National School

The collection agency "826yc01198" was hired to collect a debt of $2,572 originally owed to "National School" on account number "XXXXXXXXXXXX9981".

Collection agency [?] 826yc01198 Original balance [?] $2,572 Current balance (as of Apr 01,2005) [?] $2,572 Status (as of Apr 01, 2005) [?] Unpaid Date assigned [?] Feb 01, 2005 Date reported [?] Apr 01, 2005 Date last active [?] Sep 01, 2004 Original lender [?] National School Account number [?] XXXXXXXXXXXX9981 Account holder [?] Individual

[Anonymous]

OK- DOE said there was nothing they could do -
This means it is not a Federal Loan

So essentially they have given you a bunch of BS.

I would send/fax a nasty ITS letter based on discrimination and them trying to force your DW out of school. (This could easily back fire though)

You need to have some $ saved up before attacking this-

I never had to prove I was a US citizen when I went to college?

[Anonymous]

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Timothy wrote:
OK- DOE said there was nothing they could do -
This means it is not a Federal Loan

So essentially they have given you a bunch of BS.

I would send/fax a nasty ITS letter based on discrimination and them trying to force your DW out of school. (This could easily back fire though)

You need to have some $ saved up before attacking this-

I never had to prove I was a US citizen when I went to college?

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You may not remember but just about any college has a box where you check if you are a US citizen. You also for almost every school establish that you are a resident. (if you are not a resident unless they have a special program the tuition triples exponentially for non residents...)

This sounds like a private school or a non-state school? To the OP is this so?

Basically you are going to have to negotiate a PFD- look up the threads on PFD's. However, because it is going to be most likely categorized as a stu. loan you will really need to take care of this as lenders do not look forgivingly on those who default on stu. loans whether private or not.

Message Edited by netpanther on 11-30-2007 08:25 PM