kred Posted March 30, 2011 Report Share Posted March 30, 2011 I now live out of the country and have taken the hit on some credit card bills that i could not pay at the time, went into collections and left that behind.I also have some left on my student loan and since I dont live in US now I wondered about letting it run its course and into collections. If I do return to the US in many years would it track me down...is there NO SOL on the fed backed loan? What will its status be in say 10 years or so? Link to comment Share on other sites More sharing options...
jq26 Posted March 31, 2011 Report Share Posted March 31, 2011 It will be delinquent and may be subject to wage garnishment and other collection activities, even 20 years from now.Who knows if the law will be changed between now and then, or if any change in the law will apply retroactively to those already in default. Link to comment Share on other sites More sharing options...
stone4779 Posted April 10, 2011 Report Share Posted April 10, 2011 I now live out of the country and have taken the hit on some credit card bills that i could not pay at the time, went into collections and left that behind.I also have some left on my student loan and since I dont live in US now I wondered about letting it run its course and into collections. If I do return to the US in many years would it track me down...is there NO SOL on the fed backed loan? What will its status be in say 10 years or so?If it is a federally backed student loan, you need to call in and negotiate a rehabiliation program. There is absolutely NO Statute of Limitations on Federally Guaranteed student loans.Now, if they are PRIVATE student loans, the statute of limitations is 7 years for reporting. The states have their different SOLs. For instance in Texas the SOL is 4 years. After that they cannot sue you.If I were you I would definately arrange a rehab. Make 9-12 on-time payments, someone buys your loan back, and your default is erased from history, some have even had the lates remove, but I wouldnt take them for granted...they might, they might not.If you just let this stuff go, it will accrue interest and fees, it will be transferred or sold, and every time it is going to get to be more and more and more.For instance, I had two loans with Sallie Mae totalling $6200. After being transferred to another lender, it became $8500. Then sold to a collection agency and then the total was $10500. This was over a period of only 5-6 years.The collection agencies can add 18.5% to it every time it is sold to another CA.It can really get out of control. I suggest you get in contact with them and find out if they are federal or not. If not, ride it out. If they are, take care of it before they cyt your balls off lol.. Link to comment Share on other sites More sharing options...
DioneOkeson Posted April 20, 2011 Report Share Posted April 20, 2011 To my knowledge, when you apply for a student loan, your provider will get your guarantor information as well. If you leave the country and you forgot to pay the remaining balance, then they will find and ask your guarantor to pay for it. Link to comment Share on other sites More sharing options...
stone4779 Posted April 20, 2011 Report Share Posted April 20, 2011 To my knowledge, when you apply for a student loan, your provider will get your guarantor information as well. If you leave the country and you forgot to pay the remaining balance, then they will find and ask your guarantor to pay for it.That may be the case, but if they are federally backed he WILL have to pay if he comes back to the United States, gets a job, and they find him. The guarantor may pay, but he will still owe somebody somewhere..His tax returns will get taken too...every cent, every year, until paid in full..everything goes to interested owed first as well..AND it all accrues interest while he waits, and fees, and interest on the interest and fees, etc etc..it is all compounded daily like a credit card.. Link to comment Share on other sites More sharing options...
Recommended Posts