my friend had a student loan 25 yrs or more ago,the loan was for 2,800 dollars,he couldnt finish school cause he had an emergency in NEW MEXICO,traveled from NEWARK,DE, which took him 2 days drive,he didnt get back on time so he got disqualified,with only two days to graduate,30 years went by he received a letter stating he owes the student loan foundation $8,900 in interest plus loan,how can they wait this long and not send any bills before ,is there anything he can do to stop this.
2007-06-14 09:42:07 · 12 answers · asked by Anonymous in Business & Finance ➔ Credit
They can TRY as much as they want, but it has been more than 7 years since your friend defaulted on the loan, so legally your friend doesn't have to pay anything. Just because the legal time has passed doesn't mean that they can't keep trying to make you pay. And, if you pay anything to them, you will restart the clock against you, and then you'll be responsible for it all again.
2007-06-14 09:51:52 · answer #1 · answered by Vakari 5 · 0⤊ 0⤋
That is curious situation. If it is Ferderally secured loan then yes they can come after your friend all this time later. However there lack of contact is an intresting twist. Bottomline is your friend borrowed $2,800 dollars and knew he had to pay it back. That being said the best he can hope for is to have the intrest waved since the creditor failed to attempt to retrieve payment in a timely manner and the intrest would prove to be an undue burden, but he will have to pay back the principle which is $2,800.
2007-06-14 09:55:00 · answer #2 · answered by levindis 4 · 0⤊ 0⤋
I don't think "smarty pants" is right because they don't forgive student loans on a bankruptcy anymore or any other type of forgiveness. You might want to check on this though, the time element, they did this to my daughter, she was married three times and move about four time, twice to two different States, like she was running? but, wasn't. not from the loan.
They recently found her after about fifteen years, she seen a lawyer, got stuck with the loan, now a ten grand loan is almost twenty-five grand but, they'll allow her to pay very minimum amounts on the loan without the interest or penalty, I thought she was lucky. I told her we, the public have to pay that for you so, I'm nor sorry for you. Pay it.
2007-06-14 09:56:55 · answer #3 · answered by cowboydoc 7 · 0⤊ 0⤋
not really. somthing like that kind of happened to my mother but in the end she learned that the loan was void because she was underage when she was given the loan. (she went to bartending school and she was only 17) so after almost 15 years the government dismissed her loan because of this.
but your friend knew about the loan and i dont think it matters if he finished school or not. he can try and see is the loan company will work with him on paying it off minus interest or find some other way to fix it.
2007-06-14 09:52:40 · answer #4 · answered by yv060183 3 · 0⤊ 0⤋
They probably couldn't find him. Nevertheless, it's a legitimate debt and student loans never go away if they're federally guaranteed. In those days (I know because I'm of the same era) all student loans were federally guaranteed.
2007-06-14 10:10:48 · answer #5 · answered by Still reading 6 · 0⤊ 0⤋
I cant believe he didnt get any bills before now. He knew he owed though didnt he. They are now cross checking SS# and tax returns etc. I read a story about a man who had a student loan and it was garnished from his social security check!
2007-06-14 09:55:56 · answer #6 · answered by hirebookkeeper 6 · 0⤊ 0⤋
The statue of limitations on any loan is up after 7 years. If they didn't make any contact or agreements with him within the last seven years to repay the debt, then they have forfitted the right to collect. Tell him to write to his district attourney and better business buero to let then know that this company is trying to to becaus it is fraud!
2007-06-14 09:47:03 · answer #7 · answered by Smarty Pants 4 · 2⤊ 0⤋
Because it's planned theft, unethical, in a mantle of legality. There's much more to it than that. How that, mysteriously, you can't get a job - any kindfof job - or pay back a ridiculous figure like two thousand.
2007-06-14 09:46:37 · answer #8 · answered by vanamont7 7 · 1⤊ 0⤋
i would write a letter explain and point out that they havent sent him any bills so how did they know about it.
2007-06-14 09:47:12 · answer #9 · answered by Anonymous · 0⤊ 0⤋
ummmmmmmmmmyeah!, go figure.....he knew he owed it and they probably couldn't reach him. The rules are tricky. bankruptcy might be the only answer
2007-06-14 09:45:36 · answer #10 · answered by Elizabeth L 5 · 1⤊ 0⤋