Student Loans: A Debt That Can Haunt You

Loan-l.com - Student loans are one of the few types of credit that can haunt you almost forever. When it comes to taking out credit cards and loans, there are rules that all lenders must abide by, but many of these “normal” rules do NOT apply to student loan lenders. With most lenders they cannot legally sue you or take control of your assets (bank account, lien, etc) once the debt is past your state’s statute of limitations (SOL). For some states this is as short as 3 years after the debt’s date of first delinquency (the last “30+ days late” before the debt was charged off or sent to collections) and for others it can be as long as 15 years. Additionally, creditors are also not supposed to report the account on your credit report longer than 7 years after the debt’s date of first delinquency. Now, the SOL on your debt will depend on your state’s laws, but the 7 year reporting period is the same for everyone. With student loans, these protections are slim to none.
Student Loans: A Debt That Can Haunt You - Loan-L.com