Rebuilding Your Credit

[riverajuan]

Hi to everyone on this incredible site full of great advise and information. I am new to this site, but have a questions as I am in the process of working with my own credit problems as everyone. My questions is:

Do I have to make payments on a Student loan that is over 15 yrs old? - and if I do how should I proceed?

Any advise will be greatly appreciated.

Thanks

[wahmom]

I'm pretty sure that there is no statute of limitations regarding student loans. The government will eventually want their money. But I'm no expert and hopefully Wonderin or someone else with experience will reply soon.

You might want to check the student loan section of the board.

[riverajuan]

Thanks for your input, all advise is welcome.

Thank you, for your time and reply

[sidewinder]

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riverajuan wrote:

Hi to everyone on this incredible site full of great advise and information. I am new to this site, but have a questions as I am in the process of working with my own credit problems as everyone. My questions is:

Do I have to make payments on a Student loan that is over 15 yrs old? - and if I do how should I proceed?

Any advise will be greatly appreciated.

Thanks

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Student loans have no statutes of limitations.

They will get their money, eventually. If it is government student loan, they'll probably eventually garnish your taxes.

[Rocket]

This is simple. Get a copy of your credit report from annualcreditreport and find out their address and contact info. Contact them about paying it, and do so. (If it's the Dept of Education, look at the bottom of this post for a link.)

Student loans are absolutely the WORST things to not pay.

Per ed.gov:

Once your loan is assigned to a guaranty agency or the U.S. Department of Education (Department) for collection, the following steps may be taken to recover the outstanding balance due:

* The Department of the Treasury may offset your federal and/or state tax refunds and any other payments, as authorized by law, to repay your defaulted loan.

* You may have to pay additional collection costs after your loan is assigned to a private collection agency for collection.

* Also, you may be subject to Administrative Wage Garnishment, whereby the Department will require your employer to forward 15% of your disposable pay toward repayment of your loan.

* Federal employees face the possibility of having 15% of their disposable pay offset by the Department toward repayment of their loan through the Federal Employee Salary Offset Program.

* The Department may take legal action to force you to repay the loan.

* Finally, credit bureaus may be notified, and your credit rating will suffer.

Once a loan is declared in default, you are no longer entitled to any deferments or forbearances. In addition, you may not receive any additional Title IV federal student aid if you are in default on any Title IV student loan until you have made payments of an approved amount for at least six consecutive months. Please see Going Back to School for more information on this topic.

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Also note that defaulting on a gov't student loan pretty much bars you from any gov't job or entitlement. It ranks up there with "Are you a convicted felon?" in the government's eyes.

If the defaulted loan is held by the US Department of Education, there is information here on how to make payments:

http://www.ed.gov/offices/OSFAP/DCS/repaying.html

Good luck!

[cam006]

I agree with other posters here, there's no SOL on Student Loans.

But there is a way out, who is sending you the bills?  It may still be the servicer.  You may want to find out if they are offering any options to rehab your loan.  I can't tell from your post if you mean that the SL's are 15 years old or if you haven't paid (and were in a repayment status with the loan issuer).  If your loans are 15 years old, it doesn't matter the DOE will still want the money.  Are they sub/un-sub loans?  Are they private loans?  how do they appear on your CBR?  Are they in a default status?

[riverajuan]

In the present time I am making payments that they required me to pay through the CBE which also mention that once I have made a number of 9 payments thet they  will modify the loan by making a derease in payments in the loan and bringing it current to where I will be able to apply again for a student loan.

The reason why I brought the question in is because I have herd that after 7 yrs these loans are remove from the CR, but now thanks to your information I am aware that they need to be repaid.

I want to thank all of you for your constructive advise and will continue to visit this very constructive site of information and work to get my credit score repair. I have work to do, but information is very essential.

Thanks