Author Topic: Student loan from 9 years ago. Time barred?  (Read 756 times)

ThackeryBinks

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Student loan from 9 years ago. Time barred?
« on: September 14, 2019, 02:51:42 PM »
My wife signed up with a state University in mid 2010. My health condition deteriorated greatly at the same time so she only attended two days.  I have a chronic rare illness expected to result in death. Because she was young, she neglected paying it or dropping out.  She owed $6200. Her state taxes were garnished the next year or so leaving $5900 owed.  Then we never heard from it again. In fact a year later when it showed up on her credit it was green and good and settled, even though we clearly didn't pay it.

We log into the government student loan website and the loan name and date show up there but just has zeros for everything.

Now, 9 years later, we have received a letter from collection agency EOS CCA stating that they have collected the debt of $5888 and we should pay.  However, it also says

"This is a time barred debt and no legal action may be filed."

If it's a government loan, why does the collection paper we got today say it's time barred?

Can this hit her credit after 9 years if it hasn't already?

Can they garnish her wages?

Should we try to negotiate a settlement?
 

Sorry this is so confusing, if anyone could adivse we'd be grateful.


Dave1442397

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Re: Student loan from 9 years ago. Time barred?
« Reply #1 on: September 14, 2019, 03:05:06 PM »
Don't even talk to the debt collector without contacting a lawyer first.

Read the link below. Making any kind of payment on a time-barred debt may restart the clock and make you liable to pay the whole amount.

https://www.consumer.ftc.gov/articles/0117-time-barred-debts

ThackeryBinks

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Re: Student loan from 9 years ago. Time barred?
« Reply #2 on: September 14, 2019, 03:18:46 PM »
Thanks for the reply. What I don't understand though, is that if it is a federal loan, which it was, why does the collection notice label it as time barred? Could the paper just be auto generating that due to the age?
From my understanding Federal loans cannot be time barred.

Dave1442397

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Re: Student loan from 9 years ago. Time barred?
« Reply #3 on: September 14, 2019, 04:24:31 PM »
Thanks for the reply. What I don't understand though, is that if it is a federal loan, which it was, why does the collection notice label it as time barred? Could the paper just be auto generating that due to the age?
From my understanding Federal loans cannot be time barred.

That I don't know. Maybe someone else will chime in :)

ThackeryBinks

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Re: Student loan from 9 years ago. Time barred?
« Reply #4 on: September 14, 2019, 05:39:08 PM »
Dunno if this helps,but found this out:

The collection paper says "Client Name: Unversity of NC at Charlotte."

On the federal student loan site it says they are Stafford unsubsidized loans and both say cancelled and the amount says zero at the end. It says cancelled on Feb 2011. Another login of the federal loan servicer "my great lakes" says paid in full and all zeroes.

 

Our credit report shows only one Green Dot for a closed student loan account on February 2011, and no derrogatory marks.

Could the remaining balance be to the state school itself and not a government loan?

If so would this absolve us of any worries of a bad credit hit or garnishing?
« Last Edit: September 14, 2019, 06:13:33 PM by ThackeryBinks »

Dicey

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Re: Student loan from 9 years ago. Time barred?
« Reply #5 on: September 14, 2019, 07:17:25 PM »
Dunno if this helps,but found this out:

The collection paper says "Client Name: Unversity of NC at Charlotte."

On the federal student loan site it says they are Stafford unsubsidized loans and both say cancelled and the amount says zero at the end. It says cancelled on Feb 2011. Another login of the federal loan servicer "my great lakes" says paid in full and all zeroes.

 Our credit report shows only one Green Dot for a closed student loan account on February 2011, and no derrogatory marks.

Could the remaining balance be to the state school itself and not a government loan?

If so would this absolve us of any worries of a bad credit hit or garnishing?
I have no personal experience with student loans. These are just some logical thoughts. Print out copies of every thing that shows your (plural) record is clear. Keep them on file. If your goal is never to repay these loans, I suggest never acknowledging these recent letters in any way. Should they eventually make it to your credit reports, you will have the previous reports to show that something's amiss. It wouldn't be the first time erroneous information has been reported to a credit agency.

Still not judging, but did your spouse make any attempt to contact the lenders when she had to withdraw from school due to your health issues? Was there no kind of hardship mitigation available?  Finally, how much would it hurt you to pay this loan off? Not suggesting you do so without trying to negotiate a settlement, just wondering how much of a setback or hardship it might be.

Again, just things to ponder during your decision making process.

ThackeryBinks

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Re: Student loan from 9 years ago. Time barred?
« Reply #6 on: September 14, 2019, 09:09:13 PM »
She didn't really make much attempt to rectify it. She wrote the school telling them our situation, and the school basically responded saying failure to attend is no excuse for not owing, but that she could write a letter to the dean, which she never did.
She was 19/20 then and has grown up since.
It would hurt us pretty badly as we live with her parents because my illness is so costly. She just started a s a registered nurse, so finances are a bit better, but still very tight.
Someone else I was talking to has suggested maybe all the government sites and our credit report are showing student loans as paid off, is that that the government cancelled the loan a few months after my wife stopped attending school. The school then had to send to back, and the debt that is being presented by EOS CCA is tuition the school itself left as a bill, and was purchased by the debt collection agency.
They think maybe in that case it's going to be a private loan, and time barred, so they won't be able to hit our credit or garnish our wages.

I do hope they are correct.

mozar

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Re: Student loan from 9 years ago. Time barred?
« Reply #7 on: September 15, 2019, 10:06:28 AM »
Is there a free legal clinic near you? You really should talk to a lawyer.