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Differential between Pre and Post 2005 private student loans


QM07
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Hello:

I've been reading some threads in this sub forum and noticed references to a differential in student loans originated prior to 2005 comparative to after 2005 relative to SOL. I'm wondering what specifically is the difference?

Thanks,

QM07

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The absence of bankruptcy protection for borrowers indebted with private student loans...

Hi Bigwoodystyl:

Thanks for responding to my post, I appreciate your insight. I must have misinterpreted one of the other threads I was reading, as I thought it was suggesting state SOL didn't apply to post-2005 private student loans.

Sincerely,

QM07

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No worries; however, you've been asking that same question since you joined in 2007 and it's been answered for you several times already... The answer hasn't changed despite your best wishes and despite what some crackpot Web site about student loans might or might not say... Some private student loans are subject to SOL. Most are not. The legal reference is [20 U.S.C. § 1091a(a)]

In most cases, if you don't pay, you'll eventually be sued for judgment.

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  • 2 weeks later...
No worries; however, you've been asking that same question since you joined in 2007 and it's been answered for you several times already... The answer hasn't changed despite your best wishes and despite what some crackpot Web site about student loans might or might not say... Some private student loans are subject to SOL. Most are not. The legal reference is [20 U.S.C. § 1091a(a)]

In most cases, if you don't pay, you'll eventually be sued for judgment.

I apologize if you feel my post to be redundant. I've posted similar inquiries regarding whether student loan collection agencies fall under the FDCPA, but don't recall any specific questions related to the SOL on private loans.

My prior questions, back in 2008-2009 were related to a CAs FDCPA violations. I had actually always assumed the SOL applied to private loans, and never questioned it, until reading a recent thread which motivated my new inquiry.

I also appreciate your consideration in providing legal reference. Thanks.

----

Looks like the particular statutes which remove SOL from private student loans are as follows from TITLE 20 > CHAPTER 28 > SUBCHAPTER IV > Part F > § 1091a:

(B) a guaranty agency that has an agreement with the Secretary under section 1078 © of this title that is seeking the repayment of the amount due from a borrower on a loan made under part B of this subchapter after such guaranty agency reimburses the previous holder of the loan for its loss on account of the default of the borrower;

© an institution that has an agreement with the Secretary pursuant to section 1087c or 1087cc (a) of this title that is seeking the repayment of the amount due from a borrower on a loan made under part C or D of this subchapter after the default of the borrower on such loan; or

Is there a means through which one could determine, without having to directly ask the institution in question, whether they have an agreement with the Secretary pursuant to the referenced statutes?

>>> After reading 1087c and 1087cc(a) it sounds as though the entire statute is referencing institutions of higher education (ie. colleges/universities) that originate Federal DirectLoan student loans.

Sincerely,

QM07

Edited by QM07
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Additional insight for those interested:

--------------

ARTICLE: Eternal Student Loan Liability: Who Can Sue Under 20 U.S.C. 1091a?

2005

20 BYU J. Pub. L. 35

Author

Glenn E. Roper 1

Excerpt

I. Introduction

A. Background

The Federal Student Aid office of the U.S. Department of Education administers billions of dollars in postsecondary student aid - as of 2004, the outstanding student loan portfolio totaled $ 357 billion. 2 Over sixty percent of all college graduates in the nation have taken advantage of some kind of federal loan. 3 These student loans can be generally divided into two types: (1) some are made directly by the federal government under the Direct Loan program, 4 but (2) most are made by private lenders under the auspices of the Federal Family Education Loan program ("FFEL"). Although the Department of Education oversees FFEL loans, "guaranty agencies" - state or nonprofit institutions that contract with the federal government to supervise the FFEL - do the day-to-day administration of the FFEL. 5 The actual payment and loan processing is usually done either directly through the borrowers' schools or through commercial lenders - generally banks or other financial institutions. 6 The federal government guarantees these privately funded loans, such that in the case of student default, the lender can, assuming it has taken the required "due diligence" steps in attempting to collect the loan, 7 be repaid by the relevant guaranty agency. 8 The guaranty agency then takes assignment of the delinquent loan and seeks to collect from the borrower. "After approximately four years," defaulted loans not collected by the guaranty agency are assigned to the Department of Education.

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  • 2 weeks later...

Hello Bigwoodystyl, or anyone else, I have a similar question. In my case I took a short term loan (i.e. semester loan) from a state university back in 1987. I beleive I paid it back. I received a letter from a debt collector demanding payment on this. Does SOL apply on this also covered by 20 U.S.C. § 1091a(a)? It has been over 20 years. Thank you.

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