Legal definition of a student loan?

[igids1]

Is there a legal definition of a "student loan"? A few years back, attended lincoln tech for a few months, and left. Long story short, ended up with a balance of owing 800 after all the adjustments/pro rated refunds were done. Never paid it. Its showing up on CR as "student loan". I never applied for or took out any loan directly with the school. 

I am concerned they are using the "student loan" status so that it will never have  a statute of limitations. I already requested the documents they have, and they provided me with some stuff. Nothing saying I applied for any loan. 

Its still within the SOL, so right now, I am not looking to stir it up too much, but Id like to know where I stand.

I posted here, because this is a rebuilding question, and I will never get any sort of answer in the student loan forum

[ninjamike81]

Not sure about your Question but I am in the same boat as far as going to Lincoln tech and leaving 2 weeks in and now have a bill for 3200+ from interest from 2006.  You can order you credit reports from the CRA's and it will give you a estimated date of removal.  Mine shows 10-2013 DON'T quote me on this I may be wrong but the only student loans that never fall off are from UNCLE SAM... Direct loans, fed loans ect. AFAIK  if it is from Lincoln tech them self it should list a DOFD and estimated time of removal

[djrez4]

I don't know the "legal definition" of a student loan, but look at it this way:

You were a student who did not pay his tuition.  The school can theoretically consider it a loan for the amount due.  It may then report as a collection for a past-due bill or a past-due student loan.  I don't think you'll be able to get rid of it just because they might be calling it the wrong thing.  If you dispute, they'll likely update the reporting to fix it.

[igids1]

Ninjamike- Did you request any information from them? They have charged me interest as well. However on the forms they sent me, it says interest rate NONE

Dj-its not so much me wanting to dispute it and have it deleted, its more being concerned about it never going away, and 15 years from now having it come back again.

[ninjamike81]

no i havent.  i was never prorated eather they charged me for the whole 6 week class.  I havent been able to find out how to get it prorated.  im waiting for the SOL to run out next month than hammer them till they drop all the intrest and prorate it.  if not I will just wait till next year in nov when it falls off

[djrez4]

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@igids1 wrote:

Dj-its not so much me wanting to dispute it and have it deleted, its more being concerned about it never going away, and 15 years from now having it come back again.

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It's a derogatory account like any other.  It'll fall off after 7 years + 180 days, give or take.

[StartingOver10]

I never heard of pro-rating the cost of a class.  Student loans are a different thing. For student loans, you either took the course or you didn't. The measure of that is signing up for the course, not actual course completion or even course attendance. There is typically a very small window in which you can withdraw from the course (a few days) so if you didn't officially withdraw, you incur the expense.

Having said that, negotiate with the school to get it taken care of so it doesn't continue to accrue interest. Is there any sort of written agreement you signed when you started the program? Look it up to see what the remedies are for the school and for you. You might also check the student loan forum here.

[Shogun]

Only Federally backed loans are exempt from the CRTP rules.  This will be treated like any other collection account.

[igids1]

Ok, thanks. This is what I was looking for : )

[lesse]

Anyone have this item fall off or have any experience with them? will making a payment to the school cause the DOFD restart again??