topic Student loan issued by school, not government in Student Loans

Student loan issued by school, not government

Anonymous — Tue, 24 Jun 2008 20:07:53 GMT

I had a student loan that was issued by my university in 1997. It is showing up on my credit report as being opened in June 1998 (not true) and charged off. It is only on TU report. I disputed it saying it was too old to be on my report. I was assuming that since it wasnt a fed loan, it should fall off like any other installment loan. Is this correct? My last payment was in 1998. Please advise.

Re: Student loan issued by school, not government

Anonymous — Wed, 25 Jun 2008 18:55:26 GMT

A student loan is a student loan whether federal or otherwise, was it a Perkins loan? Those are in fact federal. No matter whether a student loan is federal or private it is still protected and you have to pay. A private loan lender can't garnish your wages though, but can and will try to collect, including taking you to court.

Re: Student loan issued by school, not government

Anonymous — Wed, 25 Jun 2008 20:47:56 GMT

It was not a Perkins loan or any federal based loan. It was just a loan made by the school. What is the statue of limitations on this, are you saying that the 7 year reporting period does not apply?>

Re: Student loan issued by school, not government

Anonymous — Wed, 25 Jun 2008 23:40:44 GMT

nursegal wrote:

It was not a Perkins loan or any federal based loan. It was just a loan made by the school. What is the statue of limitations on this, are you saying that the 7 year reporting period does not apply?>

If you signed a promissary note, then it would fall under that category or written for SOL.

I don't think student loans have SOL, but loans made by the university could be different. I am not sure.

The university my spouse attended did small short-term loans to cover cost of books, supplies, etc until financial aid was awarded, it wasn't actually considered a "student loan". It was never reported, but was paid off in 30 days as stated.

Where did you pull your reports? Does it show DOFD or estimated date of removal?

As far as I know, student loans remain for 7-7.5 years past DOFD like anything else, but I could be wrong on that.

Who is reporting the loan, the university or a CA?

Message Edited by sidewinder on 06-25-2008 04:40 PM

Re: Student loan issued by school, not government

Anonymous — Wed, 25 Jun 2008 23:45:37 GMT

The University is reporting it. But it is reporting it as OPENED in 1998, which is after i graduated. Im thinking possibly they did that to keep it on my report. I paid over 10 grand a year there in tuition....and graduated from there. You would think they would just let it go...but i guess not! It is only showing on TU, and it doesnt have a time when it states it will come off. I went ahead and disputed it with stating it was out of timeframe to be reported.

Re: Student loan issued by school, not government

LynnInMN — Thu, 26 Jun 2008 00:02:59 GMT

nursegal wrote:
The University is reporting it. But it is reporting it as OPENED in 1998, which is after i graduated. Im thinking possibly they did that to keep it on my report. I paid over 10 grand a year there in tuition....and graduated from there. You would think they would just let it go...but i guess not! It is only showing on TU, and it doesnt have a time when it states it will come off. I went ahead and disputed it with stating it was out of timeframe to be reported.

If you did not pay the loan, more than likely the 1998 date is when you defaulted on it.

Instituational loans, whether be from a public or private not for profit school, have no SOL. If it was a public school you attended, then it becomes a state debt, subject to taxoff set and possible wage garnishment.

Re: Student loan issued by school, not government

Anonymous — Thu, 26 Jun 2008 00:09:11 GMT

It was a private school. So, if there is no SOL, does that mean it also stays on my credit report forever??

Re: Student loan issued by school, not government

LynnInMN — Thu, 26 Jun 2008 00:12:34 GMT

No, it should drop off. Did you ever make payments on it? That can affect the drop off date too.

Also keep in mind that your transcripts will be frozen with an unpaid instituational loan.

Re: Student loan issued by school, not government

Anonymous — Thu, 26 Jun 2008 01:25:39 GMT

That is another odd thing. I got my transcripts with no problem this year. I actually would go ahead and pay it if i thought it would matter...but if it is going to fall off, i dont want to bother with it. Apparently its already done the damage to my score the last couple of years anyway. I have federal loans that i am repaying on time, and no lates on any of my accounts in the last 2 years.

Re: Student loan issued by school, not government

Anonymous — Thu, 26 Jun 2008 16:00:20 GMT

@Anonymous wrote:
That is another odd thing. I got my transcripts with no problem this year. I actually would go ahead and pay it if i thought it would matter...but if it is going to fall off, i dont want to bother with it. Apparently its already done the damage to my score the last couple of years anyway. I have federal loans that i am repaying on time, and no lates on any of my accounts in the last 2 years.

It DOES matter. We're no angels (you'll see that if you've read any of my posts here in SLs), we've had lates out the wahzoo on our SL consolidation loan, but it's still our debt! In our case and I'm sure yours, you did get an education out of it and chances are, are using that education!!

Also, if IANM, we, the taxpayers get whomped to offset defaulted student loans (the money for NEW loans, collection efforts, lawsuits, etc, has to come from SOMEWHERE).

Rant aside, if you don't pay this, private school loan or not, they WILL come after you. And when they do, that $10K can easily turn into $30K, payable NOW. The creditboards forum is FILLED with stories along that vein, often with ugly circumstances.

ALL student loans are exempt from SoLs. And even if a SL falls off your CRs, they are not gone and I can assure you, they are not forgotten by the government, school, state, etc.

And AFAIK, SLs can disappear off your CRs NOW and pop back up later when the guarantor claims them and begins reporting them.

Re: Student loan issued by school, not government

Anonymous — Sun, 29 Jun 2008 16:30:28 GMT

Actually, Wonderin, I AM repaying my federal loans. And the loan made from the college i went to was less than 2,000. I didnt want to reapay it now and risk it hurting my score (which is in the mid 600 range). If it were going to fall off my report, id rather let it do that then approach repaying it once we go through the closing on our second home. I certainly dont need a lecture on the student loan impact to the greater society, from someone who apparently has pondered the same things i have about these loans to begin with!

Re: Student loan issued by school, not government

Anonymous — Sun, 29 Jun 2008 17:33:57 GMT

Hi LynninMN, I need your advise, since you were an ex-collector. I had tried to get th 2k+ that GC Svcs was collecting (final student loan balances) from my 401k savings under the hardship withdrawal, but it was declined. Can I possibly give permission to GC Scvcs to go after my 401k savings directly? Thank you for your immediate assistance.

Re: Student loan issued by school, not government

Anonymous — Mon, 30 Jun 2008 02:18:34 GMT

@Anonymous wrote:
Actually, Wonderin, I AM repaying my federal loans. And the loan made from the college i went to was less than 2,000. I didnt want to reapay it now and risk it hurting my score (which is in the mid 600 range). If it were going to fall off my report, id rather let it do that then approach repaying it once we go through the closing on our second home. I certainly dont need a lecture on the student loan impact to the greater society, from someone who apparently has pondered the same things i have about these loans to begin with!

I don't see how I came off as "lecturing." Trust me, I'm here for same reason most of us are ... rebuilding my credit (and hubby's). Why? Because I'm no saint.

When I offer advice (which is also what I'm here for), I tend to make sure that others understand that I don't advocate stiffing the system -- it's not meant to imply that I think someone else IS trying to. Only that my intent is honest, honorable, and supportive. Too, too many times my advice HAS been taken as a means to cheat the system (and believe me, I don't want anyone to think that and I don't want to encourage any "listeners" out there who might be inclined that way!).

Further, I didn't realize that you WERE paying on your loans -- your post, honestly, made it seem as though you were only thinking about it. And even then, my only intent was to see you NOT go through the situations I've seen on other boards (or read in the news) ... i.e., your home is taken, your refunds offset, wages garnished, bank accounts levied. I'd rather not see ANYONE go through that.

So, if you took my post(s) as lecturing or even hateful, I really do apologize. They weren't meant that way. I only meant to stress how important not being in danger of losing everything you've worked for is.

And FTR, a LOT of people think that once the SLs fall off their reports that they are "safe" ... and then years later, they're *bleeped* six ways to Sunday. I'm not saying YOU were under that misconception, but I wouldn't be surprised if half the people who've viewed this thread ARE. And it's them I'm talking to, too.

Re: Student loan issued by school, not government

Anonymous — Mon, 30 Jun 2008 02:20:35 GMT

I'm not Lynn, but I'm pretty sure (about 99% sure) that you can't, unfortunately. AFAIK, they can't even touch your 401K, but I could be wrong. At the very least, I don't think they can (with or without your permission) unless you default and your claim is filed with the guarantor.

Re: Student loan issued by school, not government

Anonymous — Mon, 30 Jun 2008 04:03:19 GMT

No big deal, Wonderin. It just seems in a couple of post that you lecture others, but perhaps i just took it the wrong way.