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Miss M · Posted: Thu Apr 19, 2007 3:56 pm Subject: 13 year old school loan

I received a letter today saying I have a $944 obligation to a school that I attended briefly in 1994. This was not a federal loan, this was a loan taken out through the school. The original amount of the loan was $250, but they were sending me bills thru the years saying I owed double that amount, plus over $400 in interest. I purposely refused to pay this debt and simply waited for it to come off my credit report, as it would have no detriment on my finances. This debt has also been off my credit report for several years now.

Based on what I have researched on the internet and this website, I can clearly see that the Statute of Limitations expired for the state in which I signed this loan(Florida) and also for the state I now live in(Michigan). Is it true that I can 1) send them a cease and desist letter and 2) they can't put this back on my credit report?

Any responses would be appreciated.

Posted: Thu Apr 19, 2007 4:28 pm Subject:

I believe that the SOL means that they cannot sue you for this debt but that you do still legitimately owe this debt. As far as your two questions, I am sure someone will come along with the correct answer because I am not 100% sure.

Posted: Fri Apr 20, 2007 2:30 am Subject:

I am certain that tution from a non-profit institution has no SOL. It's not a consumer debt. If a judgement is obtained against you, you can be sure that it will pop back up on your credit report, and stay there for a number of years.

Posted: Fri Apr 20, 2007 6:13 am Subject:

Hi, welcome to the forums!

School loans don't generally expire. They have no SOL, so you are still responsible for the debt.

And yes, they can charge interest, so you would be responsible for the full amount if taken to court. Since it seems that it's with a collection agency, perhaps you can try and work out a deal with them since it has been such a long time.

Posted: Fri Apr 20, 2007 1:34 pm Subject:

School loans to public schools and private nonprofit are not subject SOL. In fact school loans can offset your tax returns. They are subject to interest and collection fees usually run up to 40%. The actual tradeline from the school might have dropped off your report, but there is nothing stopping the CA from reporting it. Not to mention the CA inquiries to your CR everytime the loan is placed with a new office.

My suggestion is to settle this off.

Buda · Posted: Fri Apr 20, 2007 4:50 pm Subject:

Was this a Promissory Note I had one of these and they tried to play it off as a student loan, but its not, got it removed but I did loose my right to transcripts. If in fact this is a student loan then no SOL and they can put it back on your report.
I think

Posted: Fri Apr 20, 2007 9:27 pm Subject:

When it comes to debt owed to any public or private non profit school, it really doesnt matter if it is a loan, tuition, dorm charges or library charges...all have no SOL. Anything owed to these types of schools are permanent debt that has to be paid.

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13 year old school loan

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