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Un-reinsured student loans = private loans = statute of limitations applies

Submitted by mtwalker on Tue, 09/09/2008 - 12:51pm.

The formula should be: Un-reinsured student loans = private loans = statute of limitations applies.

According to the Student Loan Ombudsman when Federally Guaranteed Student Loans lose their insured status they in effect become private student loans and the statute of limitations presumably applies. However I am being sued by a collection agency - who ignore these facts - for such a loan. I have not been able to get any Educational agency - EdFund (formerly California Student Aid Commission), SL Ombudsman, or US Dept. of Education - to verify in any way these facts. Subsequently, the collection agency has all my promissory notes, etc. and is suing as if this loan was insured with no statute of limitations. I have no precident setting case or official documentation to prove my innocence! I'm thinking this may be a case of sanctioning the collection agency. Do you have any other ideas?

Is student loan repayment some grand scam? ›
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