topic Re: Helping Relative in Rebuilding Your Credit

Helping Relative

2FixMyCredit — Mon, 12 Aug 2013 06:10:57 GMT

So I received a notice in the mail, thinking it was mine (like everything else) I opened it without looking at the name. It ended up being a collection notice from Performant Recovery for a student loan. I told my relative of this and they ok'd me asking for help.

Her student loans are all 22+ years old yet they are threatening wage garnishments and threatening legal action against her (all this is in the notice, i can type it out if needed) She is also on disablility so her paying it is out of the question.

Is there a SOL for student loans? From what I've read they ALWAYS stay on your credit profile but being student loans I don't know as much as a charge off/collection. Any help is appreciated!

BTW location in Florida.

Re: Helping Relative

Shogun — Mon, 12 Aug 2013 07:30:26 GMT

Are these federally backed student loans? There is a difference between private and federal SLs. With her being on disability, they would not be able to garnish anything for private SLs, but I'm not positive on federally backed ones.

Re: Helping Relative

trix_r_4_kids — Mon, 12 Aug 2013 13:13:15 GMT

If she's on disability, she may be able to have her loans forgiven. Check this link for more information:

http://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/disability-discharge

Re: Helping Relative

Burned2manybridgesB4 — Mon, 12 Aug 2013 13:23:02 GMT

@2FixMyCredit wrote:
So I received a notice in the mail, thinking it was mine (like everything else) I opened it without looking at the name. It ended up being a collection notice from Performant Recovery for a student loan. I told my relative of this and they ok'd me asking for help.

Her student loans are all 22+ years old yet they are threatening wage garnishments and threatening legal action against her (all this is in the notice, i can type it out if needed) She is also on disablility so her paying it is out of the question.

Is there a SOL for student loans? From what I've read they ALWAYS stay on your credit profile but being student loans I don't know as much as a charge off/collection. Any help is appreciated!

BTW location in Florida.

Federal laws being changed in 1998 and 2005, made collection on federal student loans now have no statute of limitation. There are "forgivness" programs that you'll have to inquire about, and bankruptcy doesn't eliminate the federally backed loans (majority of time).