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What is the statute of limitation for collection of student loans?

What is the statute of limitation for collection of student loans?

Full question:

Is their a limitation on a 1989 collection on a student loan that has never shown up on my credit report? It must be a private one, and the department of education does not have it on file. Can it be in collection if the school is closed?

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

Answer:

The statute of limitations in Mississippi on such a private loan is three years. Whether a school is closed or not is not relevant to collection of a student loan.

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 kind of loan has no statute of limitations?

Certain types of loans, such as federal student loans, do not have a statute of limitations in the same way that other debts do. This means that the government can pursue collection indefinitely. However, private loans typically have a statute of limitations that varies by state. In Mississippi, for example, the statute of limitations for private student loans is three years. Always check your specific state's laws for accurate information.

How to get around statute of limitations?

Attempting to 'get around' the statute of limitations is not advisable and can lead to legal complications. If a debt is beyond its statute of limitations, the debtor can raise this as a defense in court. However, making a payment or acknowledging the debt can reset the statute of limitations. It’s best to consult with a legal professional for guidance on managing debt.

Is there a statute of limitations on federal loans?

Federal student loans do not have a statute of limitations in the traditional sense. This means that the U.S. Department of Education can pursue collection efforts indefinitely. However, if a federal loan is in default, various repayment options and rehabilitation programs may be available. Always consult with a financial advisor or legal expert for options related to federal loans.

How many years before a debt is uncollectible?

The number of years before a debt becomes uncollectible depends on the type of debt and state laws. For private student loans in Mississippi, the statute of limitations is three years. After this period, the lender may not be able to legally collect the debt. However, this does not erase the debt itself, and it may still affect credit reports.

Does student loan debt have a statute of limitations?

Yes, student loan debt does have a statute of limitations, but it varies by the type of loan and state. For private student loans in Mississippi, the statute of limitations is three years. This means that after three years, lenders may not be able to take legal action to collect the debt. Federal student loans, however, do not have a statute of limitations in the same way.