RISLA loan going into Litagation...I think. What should I do?

[jujubee1010]

Hello,

I have a loan from Rhode Island that I believe is a private loan that I've just found out that maybe in litigation. I am not sure because I have JUST come back to the country after being an expat for 2 years. I was laid off from my job 2 years ago and decided to leave the country. Those 2 years were spent not worrying about student loans or credit cards and starting a family...but now I'm back and am checking my google voice and it seems I had a call from them 7 months ago about this loan.

It's for about 6K I believe, and I took it out in 2006? Is there SOL in RI...even though I am in TX? How do I find out if it's a private loan or a federal backed on? It was not a stafford or a perkins.

What is my best course of action? Non of my creditors can find me, as I left and didnt leave an address (although they have my parent's address) and the number on file is a google voice.

 

[LynnInMN]

The SOL would have been tolled (frozen) for the time you were outside the country. It seems odd that you would consider starting a family instead of paying debts....kids cost a hell of a lot of money and your abandoned debts are going to affect you in many ways....getting housing, credit and jobs. Priorities sound awfully mixed up.

 

You borrowed it in 2006 which is basically irrelevant. When did the loan default? The clock would start ticking at your default date which would generally be after you leave school plus your grace period....so generally a year to 18 months after you seperate from school if you dont make payments. Add back in your 2 years out of the country. SOL is 15 in RI and 4 in texas. I would suggest you check your credit report asap and any potential county court dockets for potential lawsuits.

 

If they really wanted to find you, they could.

[jujubee1010]

Thank you for the advice. Our choice to start a family was outside of financial reason because if we all waited until we were financially sound then we wouldnt have kids for at least another 10 years. Also we plan to live outside of the stats long term and where we plan to live, the cost of living is so low that we are able to support ourselves and a family and save.

The loan only defaulted this past FEB I believe, when my dollar income dried up. The loan started payback in 2006 and so I paid up to 2012 at least. My question is more about the litigation I guess...if it hasnt started, what is my best course of action?

[hodap2001]

If litigation has not started, then be PROACTIVE and call the collection agency to set-up affordable repayment terms.

[sim]

I don't know much about SL's and you have gotten great advice from the pro's here but just adding in my 2 cents in here speaking only from MY own experience with my private SL's. Since it's not a very large amount, I would call the collection agency and try and settle this account asap. You could probably settle this for .50-.70 cents on the dollar or even less if you have the funds to pay this off.

 

It would cost you a LOT more to defend if this does go to litigation.