Reply to I owe $125,000 in private student loans to one institution. How to get them to settle?

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Reply to "I owe $125,000 in private student loans to one institution. How to get them to settle?"

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[quote=Anonymous][quote=Anonymous]I see people talking about statute of limitations regarding student loans.  Please note that there is no longer a statute of limitations period for collecting student loans.  They removed the limitations period in the early 1990s.  Defaulting is a horrible option because the interest continues to run.

With out knowing more about the types of loans the OP has, I can't offer any useful advice.  The first step is to figure out who owns the loans and then check those holders for programs they might have for payment plans, etc.[/quote]

For FEDERAL loans there is no statute of limitations - they government can collect forever.  But if you default, they are required to work out a "reasonable and affordable" repayment plan.  For PRIVATE student loans there IS still a statute of limitations, so defaulting might be the only practical option somebody who simply can't pay has.  Info:  http://www.nolo.com/legal-encyclopedia/is-statute-limitations-private-student-loans.html

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