SL's SOL?

[IAmMyKidzMom]

I'm posting this in the Credit Forum also since it is about credit, but since it is also regarding student loans, I thought I'd post it here as well.

 

All of my student loans are from around 1994-1997. However, while I was in school, I got forbearances on them. After quitting school, I kept getting deferrments on them.

 

There was a couple of times that I didn't get my deferrment papers sent in on time and the loans went into default. As soon as I turned my deferrment papers in, they'd come out of default and go back into deferrment. I think the last time I sent in deferrment papers was around 2001 or so (not sure how long the deferrment was for at that time).

 

My question is...

 

Now my loans are in default. What date does the SOL go by for these? Would it be this time around in default AFTER the last deferrment OR would it be the first time I was delinquent on them BEFORE I made the last deferrment? It is really hard to tell when the SOL would really be.

 

Any help appreciated.

 

Edited to add: I know they have no SOL for suing you, but I mean the SOL for reporting.

Edited July 1, 2005 by IAmMyKidzMom

[IAmMyKidzMom]

Ok, in the credit forum I was given an answer that I was afraid of...is it true?

 

It said that it probably started all over again w/ the last deferrment I got and when they went into default from that, that's the date to go by..UGH!

 

Now I wish I would have never deferred or anything! These would be off of my report if I hadn't!

 

Now, another question...

 

I'm assuming if I consolidate or rehab (don't even know the difference), this AGAIN will change the date, correct? I mean if I were to default on THOSE payments, that would start this thing over again, right?

[LynnInMN]

Ok, in the credit forum I was given an answer that I was afraid of...is it true?

 

It said that it probably started all over again w/ the last deferrment I got and when they went into default from that, that's the date to go by..UGH!

 

Your SOL goes from the date of last activity which in student loans would be the end of your last deferment/forbearance or date of last payment.  So generally it is usually 225 days before your default date for your original lender/servicer.

 

Now I wish I would have never deferred or anything!  These would be off of my report if I hadn't!

If you hadnt deferred, it may not necessarily be off your credit.  There are different levels of collections.  For example with a FFELP loan Sallie Mae would start reporting from the time that your grace period is over.  Then you default...it goes to the guarantey agency.  That is 7 years.  There is also a 3rd level of collections called subrogation...this is where the DOE pays off the state guarantey agency (at a discount) and they start collections.  (They also tack on additinal huge fees!)  Another 7 years.  The DOE also tends to take student loans to judgement accounts  more often...which means it can be there until it is paid in full and then some!!

 

Now, another question...

 

I'm assuming if I consolidate or rehab (don't even know the difference), this AGAIN will change the date, correct?  I mean if I were to default on THOSE payments, that would start this thing over again, right?

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[IAmMyKidzMom]

Mine went straight from Direct Loans to DOE. Is Direct Loans and DOE the same thing? Is DOE the CA for Direct Loans?

[LynnInMN]

Mine went straight from Direct Loans to DOE.  Is Direct Loans and DOE the same thing?  Is DOE the CA for Direct Loans?

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Yes and no. Doe is the "guaranty" agency for Direct Loans. However the DOE hires its own collection agencies to collect. Both are underneath the same umbrella of the department of education but they are different entities.

[cjlady]

Mine went straight from Direct Loans to DOE.  Is Direct Loans and DOE the same thing?  Is DOE the CA for Direct Loans?

<{POST_SNAPBACK}>

 

Yes and no. Doe is the "guaranty" agency for Direct Loans. However the DOE hires its own collection agencies to collect. Both are underneath the same umbrella of the department of education but they are different entities.

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I had loans with Direct Loans. They are now with The Dept of Ed and I am starting rehab through them. The problem I have is with Direct Loans. They are reporting the loans first date of delinquency in 2004. The loans actually went delinquent in 1998 and I did not make any payments or have any deferments.

 

Direct Loans is the original lender/servicer of the loans. Shouldn't they use the first date of delinquency for reporting? Right now, they are using the date when the Dept of Ed took over the loans.

[LynnInMN]

Mine went straight from Direct Loans to DOE.  Is Direct Loans and DOE the same thing?  Is DOE the CA for Direct Loans?

<{POST_SNAPBACK}>

 

Yes and no. Doe is the "guaranty" agency for Direct Loans. However the DOE hires its own collection agencies to collect. Both are underneath the same umbrella of the department of education but they are different entities.

<{POST_SNAPBACK}>

 

I had loans with Direct Loans. They are now with The Dept of Ed and I am starting rehab through them. The problem I have is with Direct Loans. They are reporting the loans first date of delinquency in 2004. The loans actually went delinquent in 1998 and I did not make any payments or have any deferments.

 

Direct Loans is the original lender/servicer of the loans. Shouldn't they use the first date of delinquency for reporting? Right now, they are using the date when the Dept of Ed took over the loans.

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When did they actually default??? They will use the date of last activity, not the first date of delinquency for reporting purposes.

[cjlady]

When did they actually default??? They will use the date of last activity, not the first date of delinquency for reporting purposes.

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I sent a letter to Direct Loans asking them why they are reporting a tradeline on my EQ credit report that has an opening and closing date, currently 120 days past due, but everything else in the tradeline is blank.

 

This is the letter they sent me:

 

Dear cjlady:

 

Thank you for your inquiry regarding your Direct Loan accounts. We report all loans to the national credit bureaus monthly. We report all past due loans to the national credit bureaus beginning with a 60 day delinquency and every 30 days thereafter for the period the loan remains delinquent. This letter addresses when we reported your loan(s) as past due to the national credit bureaus.

 

* We reproted the past due status of your -2 loan on the following dates:

December 17, 2004-60 days past due

January 14, 2001-90 days past due

 

* Because we did not receive a payment, forbearance or deferment on November 30, 2001, your -2 loan defaulted. On February 13, 2002, we transferred your loan to the U.S Department of Education's Debt Collection Service (DCS).

 

* We began to report your -3 loan as past due beginning on April 20, 2003. Because we did not receive a payment, forbearance or deferment on January 31, 2004, your -3 loan defaulted. On February 19, 2004, we transferred your loan to the U.S. Department of Education's Debt Collection Service(DCS).

 

Sincerely,

 

Borrower Services Representative

Direct Loan Servicing Center

 

I took out these loans in 1997 and early 1998. They went into repayment in 1998. How can it take them 3 years to place loan #2 in default and 5 years to place loan #3 in default? I never made any payments and had no deferments or forbearances. Also, on loan #2, how can I be 60 days past due in Dec 2004 and 90 days past due in Jan 2001?

 

LynnInMN, can you any sense out of this?

[LynnInMN]

How long where you in school for?? Did you do any paperwork?? File Bankruptcy??