Greetings all,

I have a student loan that has been consolidated for a few years (at a nice low fixed rate) and I seem to recall somewhere in the language of the promissory note that any amount remaining on the loan after 30 years (the max.) would be discharged. Without digging it out and looking at it (I will when I get around to it) does this sound correct?

Reason I'm asking is I'm trying to decide on a long-term strategy. Either (1) overpay and aggressively target this thing and try to kill it off in 15-20 years or (2) make minimum payments hoping to get the most possible discharged at the end of 30 years. I figure I should decide on doing either one or the other. To date I've been paying slightly more than minimum (I round all payments up to the nearest $50 to keep the math easy).

Suggestions? Anyone else familiar with this?

It is 25 years, at least with the DOE. Any anything discharged is charged back to you as taxable income.

So why are they still collecting on a loan taken out in 1969? I did default and was able to get it out of default but due to circumstances is now again in default. The loan was administered by Sallie Mae and although I had been attending school I had not been defered.

Any advice would be appreciated!

There is no SOL for student loans so they can continue to collect forever. The 25 year dishcharge is for loans with the DOE that have been in continuous repayment status.