topic Re: What will happen with an old private student loan? in Student Loans

What will happen with an old private student loan?

Anonymous — Mon, 03 Jan 2011 21:27:39 GMT

I have a private student loan taken out with Citi back in 2002 to subsidize a financial aid office **bleep** up. I moved a few times and totally lost sight of the company until it showed up on my report. I have not made a payment because 1.) I forgot about it and wasn't receiving bills, 2) When I did see it on my report I was unemployed and unable to tackle a new financial obligation. Simply put will this fall off my credit report because of its age, and it's a private loan or does it fall under the same rules as a federal student loan?

[Split off to form a new thread; titled edited - Lel]

Re: What will happen with an old private student loan?

laz98 — Tue, 04 Jan 2011 04:55:08 GMT

it should eventually fall off, but that doesn't mean that they won't still try & collect.

Re: What will happen with an old private student loan?

Tazman81 — Tue, 04 Jan 2011 16:57:44 GMT

My advice would be to take care of it. Unlike with other loans, a student loan (even private ones) cannot be discharged in bankruptcy (or is extremely hard too), and there is no SOL on the debt. So, although the loan may fall off of your credit report, you will likely receive a judgement from the bank or the guarantor of the loan suing you for an amount much higher than what the student loan originally was. You could likely see if they have an income based repayment plan or an extended plan that you could go on to start getting it taken care of. The sooner it is paid, then the less it will cost in the long run.

Re: What will happen with an old private student loan?

Anonymous — Thu, 06 Jan 2011 01:47:30 GMT

@Anonymous wrote:
I have a private student loan taken out with Citi back in 2002 to subsidize a financial aid office **bleep** up. I moved a few times and totally lost sight of the company until it showed up on my report. I have not made a payment because 1.) I forgot about it and wasn't receiving bills, 2) When I did see it on my report I was unemployed and unable to tackle a new financial obligation. Simply put will this fall off my credit report because of its age, and it's a private loan or does it fall under the same rules as a federal student loan?

[Split off to form a new thread; titled edited - Lel]

Private student loans are now generally in the same boat as federal student loans.

As far as when they fall off your credit report, the rules are not at all the same as they are for other types of debt. They can stay on your credit report for far longer than the normal 7 years. There are several trigger events for when the credit reporting time period starts, and one of them is when the lender is reimbursed by the federal guaranty agency. If, for example, they wait 5 years before they obtain payout from the government, that means the student loan remains on your credit report for 12 years.

Re: What will happen with an old private student loan?

Student_Loans_Kill — Sun, 01 Apr 2012 05:06:21 GMT

@Anonymous wrote:
@Anonymous wrote:
I have a private student loan taken out with Citi back in 2002 to subsidize a financial aid office **bleep** up. I moved a few times and totally lost sight of the company until it showed up on my report. I have not made a payment because 1.) I forgot about it and wasn't receiving bills, 2) When I did see it on my report I was unemployed and unable to tackle a new financial obligation. Simply put will this fall off my credit report because of its age, and it's a private loan or does it fall under the same rules as a federal student loan?

[Split off to form a new thread; titled edited - Lel]

Private student loans are now generally in the same boat as federal student loans.

As far as when they fall off your credit report, the rules are not at all the same as they are for other types of debt. They can stay on your credit report for far longer than the normal 7 years. There are several trigger events for when the credit reporting time period starts, and one of them is when the lender is reimbursed by the federal guaranty agency. If, for example, they wait 5 years before they obtain payout from the government, that means the student loan remains on your credit report for 12 years.

100% not true. Private loans have SOL?.. But it bould be awesome if a mod could finally answer this question