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Can the government still collect on my 20-year-old student loan debt?

Can the government still collect on my 20-year-old student loan debt?

Q: How much can the government garnish for student loans?

The government can garnish up to 15% of your disposable income to collect on defaulted federal student loans. This means they can take a portion of your paycheck directly from your employer. If you are facing wage garnishment, it is advisable to seek legal assistance to explore your options for repayment or loan rehabilitation.

Full question:

1) I owe $30,000 in students loans. The debt was acquired 20 years ago. Now the government is requesting I make payment arrangements or they will eventually garnish my wages. Didn't the staute of limitations run out? 2) How long after a credit card debt is delinquent can debt collectors sue for repayment?

Category: Debts and Credit
Date: 04/07/2025
State: Georgia

Answer:

According to section 484A(a) of the Higher Education Act, there is no statute of limitations that limits the government's ability to collect on defaulted student loans. This means that regardless of how old the debt is, you cannot use the statute of limitations as a defense against repayment.

As for your second question, the time frame for debt collectors to sue for repayment of credit card debt depends on whether your credit contract includes a grace period.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

What if I've been paying student loans for 20 years?

If you've been making payments on your student loans for 20 years, you may have a few options depending on your loan type and repayment plan. Federal student loans may qualify for forgiveness after 20 years of qualifying payments under certain income-driven repayment plans. However, if your loans are in default, the government can still pursue collection efforts, including wage garnishment, regardless of your payment history. It's important to review your loan details and consult with a financial advisor for personalized guidance.

Will student loans be forgiven after 20 years of payments?

Federal student loans may be forgiven after 20 years of qualifying payments if you are enrolled in an income-driven repayment plan. However, this does not apply to all loans, and conditions must be met. If your loans are in default, forgiveness options may be limited. Always check your specific loan terms and consult with a financial advisor to understand your eligibility for forgiveness.

What happens if you default on a government student loan?

If you default on a government student loan, the government has the authority to take aggressive collection actions. This can include wage garnishment, tax refund seizure, and withholding federal benefits. Additionally, your credit score will be negatively impacted. It's crucial to seek assistance to explore repayment options or rehabilitation programs to avoid these consequences.

Do student loans get written off after 20 years?

Student loans do not automatically get written off after 20 years. However, federal student loans may be eligible for forgiveness after 20 years of qualifying payments under specific repayment plans. If your loans are in default, this forgiveness may not apply. Always check your loan terms and consult with a financial advisor for clarity on your situation.

What happens to student loan debt after 20 years?

After 20 years, federal student loan debt may be eligible for forgiveness if you have made qualifying payments under an income-driven repayment plan. However, if the loans are in default, the government can still pursue collection actions. It's essential to understand your loan type and repayment history to determine your options.