17 year old (forgotten) student loan debt?

[teriwyn]

Let me start out by saying this situation is not mine, but I'm trying to do research for an online friend. So I don't have all the details. But here it is, in his own words:

 

Turns out that 1 of my student loans (what they used to call a Perkins loan) was never repaid. These were $3,000 federal loans that were written by the college for low rate financial aid assistance on top of other aid that you did not have to repay. Considering that I had over $15,000 in loans that I *DID* repay, its not as if I was trying to be a deadbeat and not pay this. I just never received anything about it. Paperwork lost, whatever. Under normal circumstances, you would start paying these 1 year after completing all of your schooling.

 

Note that I graduated college 17 *YEARS* ago. And the updated anniversary alumni directory DEFINITELY has contact information for me. Nope, no phone calls. No nothing.

 

So with interest, penalties and the collection fees, this load has balloooned to over $7,000.

 

Considering this was 17 years ago, and they are just now trying to collect, are there any laws we should be aware of that can protect him from at least the massive interest and penalties they are trying to take on this?

[LynnInMN]

Considering this was 17 years ago, and they are just now trying to collect, are there any laws we should be aware of that can protect him from at least the massive interest and penalties they are trying to take on this?

 

It is the students responsibility to keep the school, i.e. registrar and finanial aid departments up to date with his current address. The Ulumni directory is not an official school directory. He can try to negotiate a settlement on the account, but legally he is responsible for the charges.

[LynnInMN]

Considering this was 17 years ago, and they are just now trying to collect, are there any laws we should be aware of that can protect him from at least the massive interest and penalties they are trying to take on this?

 

It is the students responsibility to keep the school, i.e. registrar and finanial aid departments up to date with his current address. The Ulumni directory is not an official school directory. He can try to negotiate a settlement on the account, but legally he is responsible for the charges.

[permafrost]

This is a long shot but maybe your friend can get some relief thru the Federal Perkins Loan Teacher Cancellation, here is a link;

 

http://studentaid.ed.gov/PORTALSWebApp/stu...sp?tab=repaying

 

Good Luck

[LynnInMN]

This is a long shot but maybe your friend can get some relief thru the Federal Perkins Loan Teacher Cancellation, here is a link;

 

http://studentaid.ed.gov/PORTALSWebApp/stu...sp?tab=repaying

 

Good Luck

<{POST_SNAPBACK}>

 

I dont see where the OP said that he was a teacher. Also cancellation according to the link you provided only goes back thru the mid 90's. The loan in question goes back to the late 80's.

[permafrost]

I don't know what an OP is but the poster did not say his friend was not a teacher either. It was just a suggestion.

Why dont' you cool down a bit. Relax, stick your head in a bucket of ice water for a few hours.

[fla-tan]

I don't know what an OP is but the poster did not say his friend was not a teacher either. It was just a suggestion.

Why dont' you cool down a bit. Relax, stick your head in a bucket of ice water for a few hours.

<{POST_SNAPBACK}>

 

permafrost

 

Advise is not normally considered to be good advise when the probability is high that it has nothing to do with the post. So far, your advise fits that catagory. I would strongly suggest that you try reading a post before responding. In addition, please try to make your responses germaine. Loans that are in default are NOT eligible for any forgiveness programs with the possible exceptions of death or disability. And as far as suggestions go, try pulling your head out of your ...

 

 

fla-tan

[fla-tan]

Let me start out by saying this situation is not mine, but I'm trying to do research for an online friend.  So I don't have all the details.  But here it is, in his own words:

 

Turns out that 1 of my student loans (what they used to call a Perkins loan) was never repaid. These were $3,000 federal loans that were written by the college for low rate financial aid assistance on top of other aid that you did not have to repay. Considering that I had over $15,000 in loans that I *DID* repay, its not as if I was trying to be a deadbeat and not pay this. I just never received anything about it. Paperwork lost, whatever. Under normal circumstances, you would start paying these 1 year after completing all of your schooling.

 

Note that I graduated college 17 *YEARS* ago. And the updated anniversary alumni directory DEFINITELY has contact information for me. Nope, no phone calls. No nothing. There is no statute of limitations on defaulted federally guaranteed student loans. Also, after 17 years, the lender is not going to accept any excuses either. Your friend's best option is to most likely see what he/she can do about rehabilitating it.

 

So with interest, penalties and the collection fees, this load has balloooned to over $7,000.

 

Considering this was 17 years ago, and they are just now trying to collect, are there any laws we should be aware of that can protect him from at least the massive interest and penalties they are trying to take on this?

<{POST_SNAPBACK}>

 

 

fla-tan

[breeze]

Federally guaranteed student loans, unlike other debts, do not go away, are not subject to any statute of limitations. In most situations they cannot even be included in a bankruptcy. The frustration is understandable, but the best option is to rehab the loan if at all possible. Otherwise, it just hangs there over one's head forever. Although it may reach the point where it is no longer on your credit report, once you are located, they can take your tax refund, put a lien on real property, garnish wages, most of it similar to the IRS actions. They don't have to sue you to do these things, they usually notify you, but not always.

 

It's just the way it is. When dealing with money, reality is your best choice of possible approaches. Some things go away or can be dealt with by other means - this is not one of them.

[fla-tan]

permafrost

 

If you are trying to see how far you can push me, don't. The kind of language that you used in your last post is not acceptable. If you continue to post like that, you will not very kindly be told to take yourself to some other board as you will be unwelcome here.

 

 

fla-tan

[teriwyn]

Thanks. I knew I could count on this place for the facts.

 

I'm sorry my thread seemed to inadvertently spawn some conflict... I hope you can tell from my original post that I really had no intention of it happening. I guess my thread was just unlucky.

 

Thanks again.