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old university looking me up

Submitted by ian123 on Sun, 01/29/2012 - 14:09
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hello everyone, i was wondering if someone would have an advice for my situation. here it is.

15 years ago i attended a private expensive undergraduate institution. i could not afford to pay and left it without graduating. i left owing them 28 thousand although i signed a promissory note for only about 4 thousand. somehow they came up with 28 grand. at that time i did not even have a social security number as i was a foreign student. they tried to collect but over the years gave up. now i am attending another private institution for graduate school and paying that one with us government loans to which i have access since i am a citizen now. my credit is good under all 3 credit agencies around 750, worked hard to build it. but under credit report inquiries i saw my old school listed in May and November and today i received a voice mail from a collector to return the call.
I am concerned what can happen and if my old school can get in touch with the new one,( if they can find out which my new school is), if they can get in touch with the department of education or if they at all have the right to collect after 14-15 years. i am very concerned and would appreciate any good advice on what to do about this situation. thank you.


hello everyone, i was wondering if someone would have an advice for my situation. here it is.
Quote:


15 years ago i attended a private expensive undergraduate institution. i could not afford to pay and left it without graduating. i left owing them 28 thousand although i signed a promissory note for only about 4 thousand. somehow they came up with 28 grand
.
Interest, late fees, and collection costs over 15 years will add up quick.

Quote:
at that time i did not even have a social security number as i was a foreign student. they tried to collect but over the years gave up. now i am attending another private institution for graduate school and paying that one with us government loans to which i have access since i am a citizen now


Did you disclose your prior educational enrollment to your new school? When you enroll at any school you are required to list ALL educational experience, good or bad. You are suppose to supply all transcripts from EVERY school you attend. Omission would be considered fraud.

Quote:
. my credit is good under all 3 credit agencies around 750, worked hard to build it. but under credit report inquiries i saw my old school listed in May and November and today i received a voice mail from a collector to return the call.


Institutional loans have NO SOL....which means now that they have found you, they will probably sue you if you do not resolve this.

Quote:
I am concerned what can happen and if my old school can get in touch with the new one,( if they can find out which my new school is), if they can get in touch with the department of education or if they at all have the right to collect after 14-15 years. i am very concerned and would appreciate any good advice on what to do about this situation. thank you.


FInding your new school would not be rocket science. Most schools have a student directory


Submitted by SOAPLADY on Sun, 01/29/2012 - 21:06

SOAPLADY

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thank you for your reply soap lady. i am hoping to get helped here so i will try to explain my situation more. please help further if you can.

the promissory note for the loan given to me by the university in jan 1997 reads:
APR 8% finance charge 1200$ amount financed 2650$ total of payments 3850$ number of payments120 amount of each payment 32$ monthly first due date jan 1 2000.
from the promissory note i conclude this is a private loan and not federally backed in any way. do you still think SOL does not matter? i looked around the forums and most say that unless it was a federally backed loan SOL applies.
all these years this loan never appeared on my credit reports. i just occasionally see a different CA listed on my report so I assume they are looking for me although I never receive anything in the mail. In fact I live overseas at this moment.

I am not sure what to do at this point. should i contact the CA from overseas. by phone? mail?would that hurt me or restart SOL? how can i found out the exact amount they want? how will i know if i am being sued if i am overseas? if the old university sold my debt to them to a CA would they still be looking for me? why?
thank you for your advice, i am trying to do the right thing with minimal damage.


Submitted by ian123 on Mon, 01/30/2012 - 13:50

ian123

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"If this is a government student loan, saying the debt collection was time barred prior to the 1991 law change might work, but probably won???t. Most courts have ruled against borrowers who claim the elimination of the statute of limitations defense does not apply retroactively to loans taken out prior to the law change. If this is a private student loan, and there have been no payments or other events that extended the time limits, the collection should be time barred."


Submitted by ian123 on Mon, 01/30/2012 - 13:54

ian123

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thank you for your reply. i am out of usa for a study year abroad and will be back in august. wherever i look online i find out that private university loans are subject to SOL unless fed backed. can you direct me where i can read that is not the case in fact. what should i do in this situation?
i am confused about who is in charge of the debt now: the school seems to have sold it, do they have ownership over it now and if i were to go to them would it hurt? should i go to CA? what to do do make the best out of this situation? the debt never appeared on my credit report. never in the last 15 years.
just looking for the best way out

thanks


Submitted by ian123 on Tue, 01/31/2012 - 12:05

ian123

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Institutional loans are different from private or federal loans. Your school was likely private but non profit. Institutional loans are usually made from an endowment fund which in effect makes your school the guarantor of your loan. From my understanding this is covered under the Higher Education Act.


Submitted by SOAPLADY on Tue, 01/31/2012 - 17:17

SOAPLADY

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my first school is for profit. would you have any advice what i should do and where i can get an answer if sol applies to the loan i have? thanks


Submitted by ian123 on Tue, 01/31/2012 - 21:23

ian123

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i can't write the name of the school here. but it is a big, for profit private university in north east. how can knowing that make a difference? i can privetely email you the name of the school. thanks for helping.


Submitted by ian123 on Wed, 02/01/2012 - 10:07

ian123

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i sent the college name by pvt.thanks.


Submitted by ian123 on Wed, 02/01/2012 - 20:24

ian123

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thank you for your effort to help. very appreciated. i have no idea what i should do now.


Submitted by ian123 on Thu, 02/02/2012 - 21:41

ian123

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