By financen | June 2, 2009 - 5:31 pm - Posted in Statute of Limitations, Student Loan

Many people do not know much about the statute of limitations on the student loans. An average student prior to graduation is too much interested in completing his school, getting his degree, finding the best job and getting on with his life. Along with all the activities going on in his life, he is responsible to pay his bills which include student loans.

Sometimes, life gets so busier and many people are strapped with paying mortgages, rent, car notes, credit card bills, insurance, medical bills, utilities and other expenses in this shaking economy.

Due to some unexpected emergencies, you start missing your monthly payments towards your debts and thus it starts falling behind. Slowly and slowly, these debts get seriously delinquent adding up with highest interests and fees.


Since the creditors are not able to collect the outstanding balance including student loans, they will send the file to some collection agency who will use all kinds of collection tactics to recover the amount. As an educated customer, you should know about the statute of limitations on these student loans. If you have taken a student loan from some private lender, then it will come under the SOL period. Federal loans are never past the statute of limitations.

You might be asking what a statute of limitation is. It defines the deadlines by which a creditor or a lender can take legal actions against the borrower in order to collect a debt. Once the statute of limitations has expired, the creditor, lender or the debt collection agency cannot take you to the court and sue you.

Statute of limitations is an absolute debt relief and no creditor or debt collector can against it and win the case in the court. Every state has its own SOL laws. If you have not been making any payments on your student loans for the past three to four years, there is a very good chance your student loan will be past the SOL period, but you must double check the state laws.

If you have not made any payment on your private student loans and it is very close to the expiry of the SOL period, the creditor or the collection agency will try every possible means to collect the debt. Make sure that you are aware of the laws and any latest payment activity will renew the SOL period after the loan gets current. You need to stand as an educated consumer when dealing with the scary debt collectors.

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