CRTP on SL ?

[bichonmom]

Is there a SOL on SLs? I had two SL about 20 yrs ago. They were with DOE and I believe I had consolidated and deferred them through Sallie Mae. It's been a long time, but that is to the best of my recollection. Because of the finance charges and interest, the balance ended up many times the original loan amounts, and I was not able to pay. They went to collections and eventually fell of my credit report. Every so often, I am contacted by a new CA about this debt.

I've heard that the laws for SL are different than for other types of credit, so I am wondering if a new CA can put this back on my credit report, and also if there is any other action they can take besides trying to contact me.

Thank you!

 edited to change topic from SOL to CRTP

[laz98]

they are federal loans?  if they are, then i want to say that they can pretty much hound you for life.....i think that's what i read here.  government isn't likely to give up on trying to get its money, you know?  private loans, i have heard there are a lot of differences, but i don't imagine they would let money go either.

[bichonmom]

That makes sense. What I wonder is if there is a SOL for CAs reporting SLs on our CR. If a new CA gets it, can it be re-aged and come back on our CR after the original 7 years?

Thank you!

[laz98]

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@bichonmom wrote:

That makes sense. What I wonder is if there is a SOL for CAs reporting SLs on our CR. If a new CA gets it, can it be re-aged and come back on our CR after the original 7 years?

Thank you!

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SOL & CRTP are different, & i think you may be confusing the 2.  SOL is how long they have to sue you.  CRTP is how long it can be on your credit report.

now, with student loans, i understand it is not as simple as waiting the 7 years & calling it a day.  from what i have heard, they can stick around much longer, & i suspect that the selling of the debt has a lot to do with that.  O6, a poster here, will have better information.  i hope that helps a little though!

[bichonmom]

Is there a CRTP for SLs? And if so, what is it?

Note: this is federal SL thru DOE.

Thank you!

[laz98]

i found the post by O6 that i was looking for.  i hope this helps!  (i know your post doesn't mention default, but i thought some info would be helpful)

02-26-2011 05:10 PM

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@laz98 wrote:

don't they just stay on for the regular 7 or 7.5 years & then come off?

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Not necessarily.

Student loans are handled differently when it comes to credit reporting.  While as a negative tradeline they can only stay for up to 7 years, the problem is the "trigger event" that starts the CRTP.  Unlike most conventional debt, DoFD is but one of several trigger events and CRAs can chose the trigger event which works most to your disadvantage.

For example, one trigger event is when the lender gets reimbursed by the government guarantee agency for the student loan (or part of the student loan) that you've defaulted on.  This could take years from the day you've defaulted.  Taking a student loan that you defaulted on in, say, March 2011, the lender may try to collect for a year or more, turn it over to outside collections for another year or more ... and then begin the process of getting reimbursed by the government guarantee agency only actually getting reimbursed half a year later.  So, if they get reimbursed in, say, March 2014, the bad debt can be reported until April 2021. 

Student loan and child support debt, though not able to live forever, can live long enough to cause you untold grief and ulcers.

[laz98]

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@laz98 wrote:

don't they just stay on for the regular 7 or 7.5 years & then come off?

---

Not necessarily.

Student loans are handled differently when it comes to credit reporting.  While as a negative tradeline they can only stay for up to 7 years, the problem is the "trigger event" that starts the CRTP.  Unlike most conventional debt, DoFD is but one of several trigger events and CRAs can chose the trigger event which works most to your disadvantage.

For example, one trigger event is when the lender gets reimbursed by the government guarantee agency for the student loan (or part of the student loan) that you've defaulted on.  This could take years from the day you've defaulted.  Taking a student loan that you defaulted on in, say, March 2011, the lender may try to collect for a year or more, turn it over to outside collections for another year or more ... and then begin the process of getting reimbursed by the government guarantee agency only actually getting reimbursed half a year later.  So, if they get reimbursed in, say, March 2014, the bad debt can be reported until April 2021. 

Student loan and child support debt, though not able to live forever, can live long enough to cause you untold grief and ulcers.

[MarineVietVet]

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@bichonmom wrote:

Is there a CRTP for SLs? And if so, what is it?

Note: this is federal SL thru DOE.

Thank you!

---

I'm still trying to learn about SL's but I do believe they are handled a bit differently than other collections.

20 U.S.C. § 1080a : US Code - Section 1080A: Reports to credit bureaus and institutions of higher education

A consumer reporting agency may make a report containing information received from the Secretary or a guaranty agency, eligible lender, or subsequent holder regarding the status of a borrower’s defaulted account on a loan guaranteed under this part until—

(1) 7 years from the date on which the Secretary or the agency paid a claim to the holder on the guaranty;

(2) 7 years from the date the Secretary, guaranty agency, eligible lender, or subsequent holder first reported the account to the consumer reporting agency; or

(3) in the case of a borrower who reenters repayment after defaulting on a loan and subsequently goes into default on such loan, 7 years from the date the loan entered default such subsequent time.

I read that to mean that the CRTP for SL's is not the same as other debts and the DoFD might be not as critical.

But I''m still learning. 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[MarineVietVet]

I'm still trying to learn about SL's but I do believe they are handled a bit differently than other collections.

20 U.S.C. § 1080a : US Code - Section 1080A: Reports to credit bureaus and institutions of higher education

A consumer reporting agency may make a report containing information received from the Secretary or a guaranty agency, eligible lender, or subsequent holder regarding the status of a borrower’s defaulted account on a loan guaranteed under this part until—

(1) 7 years from the date on which the Secretary or the agency paid a claim to the holder on the guaranty;

(2) 7 years from the date the Secretary, guaranty agency, eligible lender, or subsequent holder first reported the account to the consumer reporting agency; or

(3) in the case of a borrower who reenters repayment after defaulting on a loan and subsequently goes into default on such loan, 7 years from the date the loan entered default such subsequent time.

I read that to mean that the CRTP for SL's is not the same as other debts and the DoFD might be not as critical.

But I''m still learning. 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[bichonmom]

---

@MarineVietVet wrote:

---

@bichonmom wrote:

Is there a CRTP for SLs? And if so, what is it?

Note: this is federal SL thru DOE.

Thank you!

---

I'm still trying to learn about SL's but I do believe they are handled a bit differently than other collections.

20 U.S.C. § 1080a : US Code - Section 1080A: Reports to credit bureaus and institutions of higher education

A consumer reporting agency may make a report containing information received from the Secretary or a guaranty agency, eligible lender, or subsequent holder regarding the status of a borrower’s defaulted account on a loan guaranteed under this part until—

(1) 7 years from the date on which the Secretary or the agency paid a claim to the holder on the guaranty;

(2) 7 years from the date the Secretary, guaranty agency, eligible lender, or subsequent holder first reported the account to the consumer reporting agency; or

(3) in the case of a borrower who reenters repayment after defaulting on a loan and subsequently goes into default on such loan, 7 years from the date the loan entered default such subsequent time.

I read that to mean that the CRTP for SL's is not the same as other debts and the DoFD might be not as critical.

But I''m still learning. 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

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Thank you, Marinevet.

I wonder what "subsequent holder" means. If that means CA, could a new CA report it on the CR and the 7 years start over? I wish there were more explicit info about the rules for SL. Right now, my CR is clean, but I periodically get re-contacted by a new CA and am afraid it's going to reappear on my CR after all of the work I've done to clean up my credit.

[bichonmom]

I'm still trying to learn about SL's but I do believe they are handled a bit differently than other collections.

20 U.S.C. § 1080a : US Code - Section 1080A: Reports to credit bureaus and institutions of higher education

A consumer reporting agency may make a report containing information received from the Secretary or a guaranty agency, eligible lender, or subsequent holder regarding the status of a borrower’s defaulted account on a loan guaranteed under this part until—

(1) 7 years from the date on which the Secretary or the agency paid a claim to the holder on the guaranty;

(2) 7 years from the date the Secretary, guaranty agency, eligible lender, or subsequent holder first reported the account to the consumer reporting agency; or

(3) in the case of a borrower who reenters repayment after defaulting on a loan and subsequently goes into default on such loan, 7 years from the date the loan entered default such subsequent time.

I read that to mean that the CRTP for SL's is not the same as other debts and the DoFD might be not as critical.

But I''m still learning. 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[MarineVietVet]

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@bichonmom wrote:

Thank you, Marinevet.

I wonder what "subsequent holder" means. If that means CA, could a new CA report it on the CR and the 7 years start over? I wish there were more explicit info about the rules for SL. Right now, my CR is clean, but I periodically get re-contacted by a new CA and am afraid it's going to reappear on my CR after all of the work I've done to clean up my credit.

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I wish I could help you with that but I don't have any idea. Sorry.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[bichonmom]

That's okay. Thank you. Maybe I should try calling a BK lawyer and ask them. They'd probably know the SL laws.