Re: O6 - I was talking about his unpaid loans... those don't...[ Edited ]
07-29-2011 09:17 PM - edited 07-29-2011 09:20 PM
maybe you are right O6, but in my case it is with the DOE, subsequently they would chase me for the rest of my life, starting with taking my taxes and garnishing my wages, so yes, maybe it comes off, but it isn't as easy as blowing off an old cell phone bill or something that legit wipes off with the SOL.
A common misconception is that the statute of limitations (SOL) determines when an item must fall off your credit reports. With very few exceptions, the SOL does not determine the credit reporting time period (CRTP) and student loans are not one of those exceptions.
It does not matter who holds the student loan or whether they are obtained directly from the government or a private lender. All student loans have a set time when they must fall off. Just because they do fall off your credit report, though, does not mean the lender cannot continue hounding you for the rest of your life.
20 U.S.C. 1080a(f): Duration of authority
Notwithstanding paragraphs (4) and (5) of subsection (a) of section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c(a)(4), (a)(5)), 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.
Now, could student loans report longer than certain other types of debts? Yes. However, they do fall off. Still, there are some debts that for CRTP purposes can be much worse than student loans. Child support arrears, in certain cases, can report for 28+ years. Between a defaulted student loan and child support arrears, I'd take the student loans any time -- hands down.