Is this a student Loan?

[Subprime]

I took a distance university class. They let me send in 1/3 of the fees and gave me a revolving charge to pay the rest of the fees for the semester. Is this revolving charge the same as a student loan and would it be covered under Section 484A(a)'s anit SOL - provisions?

[LynnInMN]

I took a distance university class.  They let me send in 1/3 of the fees and gave me a revolving charge to pay the rest of the fees for the semester.  Is this revolving charge the same as a student loan and would it be covered under Section 484A(a)'s anit SOL - provisions?

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Since I cant figure out what Section 484A(a)'s anit SOL - provisions are, I will answer both SOL rules for tuition accounts.

 

Tuition accounts are subject to the same 7 year reporting SOL as all other debts. However, if the university you attended was public, there is no collection SOL. It is considered a state debt.

[Subprime]

Lynn,

 

Looks like the Higher Education Act onlly covers Federal Financial AID. I am not sure if a revolving tuition account can be considered under the HEA. The provisions of section 484 are supposed to remove SOL on U.S. Department Of Education financed loans. I still can't find the exact wording in the HEA.

 

Looks like this is part of the state University system and my next question is the what is their ability to collect outside their state. If there still no SOL?

 

-Subprime

[LynnInMN]

Tuition accounts from a state school are considered state debts just like state taxes and fines. They can legally collect from you forever. They cannot sue you after 7 years but they can still pursue you via a CA.

[Subprime]

Tuition accounts from a state school are considered state debts just like state taxes and fines.  They can legally collect from you forever.  They cannot sue you after 7 years but they can still pursue you via a CA.

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Can they collect from you outside of their state?

[LynnInMN]

Tuition accounts from a state school are considered state debts just like state taxes and fines.  They can legally collect from you forever.  They cannot sue you after 7 years but they can still pursue you via a CA.

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Can they collect from you outside of their state?

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Yup!