waverlymike

Is my student loan federally guaranteed? (Is there a statute of limitations?)

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So I was just smacked in the face with information that National Collegiate Trust has gotten NCO FInancial to attempt to collect on a defaulted student loan from me.


 


First of all, I don't even remember taking this loan. I was an irresponsible prick my first time in college and I drank way too much so my memory is not the best. However, they are telling me that I got a private loan from Charter One (I believe through the education resource institute) and the check was sent directly to me, which I cashed.


 


Now, this was in 11/2004. However, I also have vague memories of my father attempting to help me with this and getting a plan together in 2008. They say one payment was made 4/2008.


 


This is not listed in the NSLDS database. I believe they said it was a ALPLN. My other current loans, which I pay, are listed on NSLDS but this isn't. 


 


How do I find out for sure if this is federally guaranteed or not?


 


If the last payment was made 4/2008 and it was not federally guaranteed then the SOL would be up in May of 2014, right?


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If it is a private loan, it does not fall under the Federal Student loan program. I do not think NCO buys Federal Student loans.

 

If it is private them you need to treat just as any other debt. There will be a SOL but you need to look at your States law that govern the time limit.

 

Always treat NCO as a junk debt buyer. This loan was more than likely, since NCO gas it, sold to them. They should have very little proof they own this debt. Send them a refusal to pay letter ans they will pass it on to one of the other collection agency that are part of the Sherman Group. Either LVNV, or Convergent should be the next ones to contact you. If you can stall them until May 2014 nyou should be able to fight this in court if they file.

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If the last payment was made 4/2008 and it was not federally guaranteed then the SOL would be up in May of 2014, right?

 

Correct.  

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Sorry for the naivete. So when I call the Department of Education, do I just ask for a list of all of my federal loans? Of a list of any and all loans that would be federally guaranteed? Is there some other stipulation about a private loan that is backed by a non-profit or something like that that makes them exempt from the SOL? Just want to make sure I have all of my bases covered.

 

Also, what are the odds that I don't get sued for this before the SOL is up? Do you think it would be better to offer some kind of lump sum payment to settle it? Is there any way to offer a settlement without acknowledging the debt is mine or restarting the SOL or anything?

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Sorry for the naivete. So when I call the Department of Education, do I just ask for a list of all of my federal loans? Of a list of any and all loans that would be federally guaranteed? Is there some other stipulation about a private loan that is backed by a non-profit or something like that that makes them exempt from the SOL? Just want to make sure I have all of my bases covered.

 

Also, what are the odds that I don't get sued for this before the SOL is up? Do you think it would be better to offer some kind of lump sum payment to settle it? Is there any way to offer a settlement without acknowledging the debt is mine or restarting the SOL or anything?

@waverlymike - I would explain the situation and tell them you are looking to verify that a loan is federally insured.  They should be able to help you from  them. 

 

If there is an SOL, in New York, a new written promise to pay restarts the SOL.  You can try and work out a settlement agreement with them, if they agree to the settlement and consider it payment in full, you don't have any worries with the SOL.  Don't do a payment plan as part of the settlement!

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Ok, and if it is not "federally insured" then there would be a SOL, right? I read something about non-profit orgs guaranteeing them or something and those being exempt from SOL.

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I read something about non-profit orgs guaranteeing them or something and those being exempt from SOL.

@waverlymike - that's a new one on me...

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Ok, and if it is not "federally insured" then there would be a SOL, right? I read something about non-profit orgs guaranteeing them or something and those being exempt from SOL.

Defaulted student loans have become the biggest money maker for debt collectors in the last few years. SLM Corp (Sallie Mae) has been contracting justabout every debt collector they can to help them collect defaulted student loans.

 

Federal-aid law requires collectors to offer “reasonable and affordable” payments, so debtors can “rehabilitate” their loans. The law mandates no minimum payment for a borrower to enter a rehabilitation program, and collection companies may take borrowers’ finances into account. This would fall under the deceptive acts portion of the fdcpa.

 

Insisting that cash-strapped borrowers make minimum payments and then failing to disclose lower-cost options violates both federal-aid and fair debt-collection laws, see http://www.bloomberg.com/news/2012-03-26/obama-relies-on-debt-collectors-profiting-from-student-loan-woe.html

 

 

In july 2013 the Federal Education Dept held meetings to determine some new rules, one of them being thatdebt collectors must follow the Federal rules for affordable payments. Debt collectors are required to set payment for defaulted loans based on the persons income.

Edited by nascar
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