wesleep Posted January 23, 2008 Report Share Posted January 23, 2008 i have an outstanding balance on a school loan from 1996. They have turned it over to a collection agency and the agency contacted me by mail. So i started the validation process. The collection agency sent me my validation which was my actually promissary note where i signed. It had the amount and the intrest rate with payment schedule. Is there a SOL on this loan. The orginal was a sail loan for $1,740. Now the balance with interest is $8,740. Whats my next move. Do i try to settle. Nothing has been reported on my credit reports but the agency said they will report it in 30 days. Can they do this. What should i do next. Link to comment Share on other sites More sharing options...
isislc Posted January 23, 2008 Report Share Posted January 23, 2008 If this is a federally backed loan, you have no choice, make a deal with them. You're gonna have to rehab it which will take about 9 months before you can get it back into good standing. Even then, they may not remove the default and GW letters will not work on Federal loans. Link to comment Share on other sites More sharing options...
wesleep Posted January 23, 2008 Author Report Share Posted January 23, 2008 no as far as i know it is not a federal backed loan. Its a loan that the school itself provides. Its not in default and nothing has ever been reported on my credit report. And also if it were a federal backed loan wouldnt they take my income taxes. How can I find out about the sol. And how can i be sure its not a federal backed loan. I need some help with this. I have a 710 fico score right now Link to comment Share on other sites More sharing options...
isislc Posted January 24, 2008 Report Share Posted January 24, 2008 You said that they sent you a copy of the promissory note. Did you read it as to the terms and conditions? It should make mention to it being a Stafford, PLUS, etc if it is a federally backed loan. But DV'ing is the right first thing to do. As for SOL there is a sticky above, according to the chart, your SOL would be 5 years. Link to comment Share on other sites More sharing options...
Recommended Posts