Student Loan SOL...Private/Federal

[Anonymous]

I thought i read somewhere on this board that there is no longer SOL's on student loans....

thanks to the last congress SOL does not appy to student loans...my question is does this apply only to FEDERAL student loans or PRIVATE or BOTH?

[Anonymous]

My understanding there has never been a SOL on a student loan. Mine caught up to me after 12 years. I entered a loan rehab program and got it back on track, but they will chase you until you die basically.

[braznyc]

As you stated Federally backed student loans don't have a SOL, they're not playing LOL.

See this linke below

http://www.finaid.org/loans/default.phtml

Here is a quote taken from it regarding private student loans.

Private student loans tend to have long-term default rates that are about half of the default rates on federal education loans, partly because they exclude most borrowers with credit scores below 650. The federal government lends to a riskier population of borrowers because the government is focused on enhancing access to higher education, while private lenders are focused on profitability.

After I read this entire section of finaid before taking my federally backed student loans, I said I don't care what happens my student loans will be the first payments I make along with my tax payments, if I have to work 3 jobs I will, why because they're making it possible for me to attend school and the damage is so much. I prefer to live like a pauper now, so I can live like a Queen later. I'm also paying off the unsubsized interest now, rather than wait. I work so I rather do that now, so I'm just left with the principle later. Anyways sorry for rambling.

Alright just my little motto. Good luck!

[Anonymous]

well i consolidated about 18 months ago, however this private loan was left out of the consolidation...was not aware that it was not consolidated with the rest....

but sill unsure if PRIVATE STUDENT LOANS have SOL?

[Anonymous]

Private student loans are protected by the same measure.  No SOL on them either.

[Anonymous]

There is no SOL on student loans. The U.S. Supreme Court unanimously decided in December 2005 that the government can seize Social Security benefits to pay off old student loans, in Lockhart v. U.S. (546 U.S.(04-881) 2005). The plaintiff in that case was a 67-year old retiree unemployed since 1981 and disabled after double heart bypass surgery and related health problems. He lived solely on his $874 monthly benefits. He had incurred $80,000 of student loans to attend various colleges back in the 1980s. When notified his benefits would be cut by 15 percent to repay his loans, he acted as his own attorney and filed an injunction action in federal court to block the Social Security offsets. The trial judge dismissed his case and that ruling was affirmed in Lockhart's appeal to the 9th Circuit court. He succeeded in getting the U.S. Supreme Court to hear the case, but it unanimously affirmed the prior ruling. Lower courts had been divided for years on this issue due to conflicting federal laws. The Debt Collection Act of 1982 imposed a 10-year time limit for collecting amounts due the government, and Lockhart argued that his benefits couldn't be reduced because they were more than 10 years old. But the Higher Education Technical Amendments of 1991 eliminated time limitations to collect certain loans and, as the Supreme Court pointed out in its decision, The Debt Collection Improvement Act of 1996 specifically stated that ''all payments due an individual under the Social Security Act shall be subject to offset under this section.'' (This offset allows government garnishment of up to 15 percent of most Social Security benefits to repay defaulted student loans.) The practical impact of the new case is far-reaching. For years the U.S. government has been criticized for not developing an effective plan to recover unpaid student loans, thus costing taxpayers huge amounts of money. According to the Bush administration, the current amount of outstanding student loans exceeds $33 billion, of which $7.4 billion is delinquent and $5.7 billion is over 10 years old. Supporters of Lockhart say it creates a long-needed collection procedure for unpaid student loans. Critics of the decision suggest the government's failure to collect these debts within 10 years should result in cancellation, because to do otherwise effectively repeals part of the Social Security law to the detriment of financially vulnerable recipients. http://www.globalaging.org/pension/us/socialsec/2006/studentloans.htm

[granny031350]

This is true for federally back loans, government loans but the PRIVATE ones are considered unsecured debt even though the lenders want you to think otherwise.  My federal loans, I am repaying.  The private ones, NOT backed by ANY government agency (wells fargo, plato loans etc) were ALL discharged in my recent BK.

[fishbjc]

It's my understanding that Federally Backed Student Loans have no sol, which is how it should be. 

[Anonymous]

true,

I agree that Federal Student Loans that are backed by Taxpayers dollars should have SOL and be repaid..

But recently PRIVATE student loans I consider PREDITOR lending...no better than Cap1 and First Premier..there are no restrictions on PRIVATE loans, ie, Fees, Interest Rates, SOL's, 

if you default they can charge ANYTHING they want, and the Government says OK..

Private Lenders are in bed with the instutuions of education....

[Anonymous]

wow...that is sad for that poor man to wait til  you are so old and have to be stuck repaying a debt that is very difficult