Hi,

I have a student loan with Wells Fargo Bank that defalted in 2001. I know the government backed student loans had no SOL, but this is a private one. The reason I am asking is that I got a collection letter today for the amount of 14,000. I need to know if the SOL in Georgia has expired.

Thanks

Chris

Can you tell us more about it? Is there any kind of guarantor for it? Who holds the loan now?

If WF is the only party to the loan (meaning there is no guarantor) then it would expire the same as a written contract would expire - six years. So you still have a couple of years before you're out of the woods. If it was backed by a non-profit, then there may not be a point in time where the SOL would expire.

I hope this helps.

It is also very common for private loans to sue for judgement right before the SOL is up...that way they protect themselves and you can end up being garnished, bank accounts levied....so be careful!

Good point; I forgot to mention that.

If you can negotiate payment arrangements, it's in your best interest in the case of a SL to go ahead and do that. I wish you all the best.

Thanks for the replys! Here is a little more info on the situation. I was younger and stupid back then. My expected graduation date was 5/01. Things happened and it has taken me longer to graduate. I have been going part-time on and off again. I am now full time again and plan to finish in a little over a year. In the the last 5 years I have moved about 8 times. I never kept WF updated on my address, so they assumed I graduated, but I was still in school. So technically it should have been defered. I do realize it is my fault and I should have kept them up to date. I dont mind paying the money I owe. I just do not want a judgment against me. I would like to try to purchase a house in a couple of years. I wouldn't mind making payments to the CA. The CA is not on my credit report yet. I owe around 14 thousand. What is a reasonable payment? I figure around a hundred a month since I am still in school and my income is limited. Do you think they will settle for a lower amount. Also should I DV the CA? Any help on this will be appreciated.


Thanks

Chris Corn

Generally speaking, the CA in the case of a SL will probably be able to provide the DV. BUT it doesn't hurt, in the case of a private SL, to request it. That way you're sure to pay the right entity and you should request a full accounting of the loan.

You may also want to contact WF and find out if they would be willing to pull the account from the CA and let you pay them directly. I don't know if they will or not, but it may not hurt to ask. Who is the CA in this case?

I have found that when it comes to SLs, honesty is the best policy. It seems people are more willing to work with you if they don't feel like you're trying to pull the wool over their eyes.