US Legal Forms
Legal Resources
Questions & Answers
Criminal
Is there a time frame for loan discharge due to false certification?

Is there a time frame for loan discharge due to false certification?

Full question:

I'm a victim of false certification. I received a students loan in 1978; I became aware of this loan in 2007. I put in an application for loan discharge in and was told since I had a loan before 1986 I do not qualify. Under education law, 20 U.S.C SEC1087(C) (1) there is no time frame. Can you please help me out with this? Is there a time frame?

Category: Criminal
Date: 04/07/2025
State: New York

Answer:

Under Section 6 of the terms and conditions for loan discharge based on false certification, eligibility is limited to those who received Federal Family Education Loan (FFEL) or Direct Loan program funds on or after January 1, 1986. If you received your loan in 1978, you may not qualify for discharge based on false certification.

To qualify, you must provide documentation that shows you meet the qualifications for loan discharge. This includes testimony, sworn statements, or other evidence that supports your claims. You must also cooperate with the Department of Education or its representatives regarding your request. If you fail to provide the necessary documentation or if the information you provide is found to be false, your request may be denied or revoked.

Additionally, if your loan is discharged due to false statements you knowingly made, you could face civil and criminal penalties under federal law. If your loan is discharged, you must assign any rights to refunds from the school to the Department.

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 is the 7 year rule for student loans?

The 7-year rule generally refers to the period after which certain negative information, like defaults, can be removed from your credit report. However, this does not apply to student loans in terms of discharge or forgiveness. Student loans can remain on your credit report for up to 7 years after the default, but they do not automatically get forgiven or discharged after this period. It's important to understand that student loans have specific terms for discharge that vary based on the type of loan and circumstances surrounding it.

What is loan discharge false certification?

Loan discharge due to false certification occurs when a borrower claims they were falsely certified for a student loan. This can happen if the school misrepresented the borrower's eligibility or if the borrower was not eligible for the loan type they received. If proven, the borrower may have their loan discharged, meaning they would no longer owe the loan amount. However, eligibility for this discharge is limited to loans received after January 1, 1986.

At what age do student loans get written off?

Student loans do not automatically get written off at a specific age. Instead, federal student loans may be forgiven under certain conditions, such as total and permanent disability or after 20 or 25 years of qualifying payments under income-driven repayment plans. Private loans may have different terms. It's essential to review the specific terms of your loan agreement to understand your options.

Do student loans get forgiven after 7 years?

No, student loans do not get automatically forgiven after 7 years. While negative information related to student loans may be removed from your credit report after 7 years, the loans themselves remain due until they are paid off, discharged, or forgiven under specific programs. Forgiveness options usually require meeting certain criteria, such as income-driven repayment plans or public service employment.