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Posted in Student Loans
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ssistudentloan

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will this company tell the people we owe where we are til we can pay?
I owe an old school loan and am 58 now and am on SSI and section 8 housing. I do want to pay things off but I just don't have the money to live on hardly.

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Contact the loan servicer to let them know your situation.  No one else can do that for you.  There may be some programs in place for loan forgiveness or very low payments.  Keeping creditors informed of even bad situations at least tells them you want to take responsibility for the loan even if unable to.  Otherwise, you could be considered a 'deadbeat' and that is not a good thing.

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How old is the loan? Is it still showing on your credit report? Any derogatory information on your report will fall off approx 7 years from the last time you've made a payment. If you haven't made a payment on this loan in over 7 1/2 years then it should be removed from your report. If this is the case contact the three credit bureaus (Transunion Experian and Equifax) and ask them to remove it as it is too old to be listed. Also remember that paying a collection will only mark it as paid, it will not remove it from your credit reports unless you get an agreement in writing with the collection company that they will remove it for your payment. Wanting to do the right thing is great, just keep in mind that doing the right thing in this case will have little benefit to you. Also be aware that entering into any new payment agreements with a debt collector may restart the clock on both the statute of limitations for them suing you and also for the credit reporting time period. Long story short here, is that if you do want to take care of old debts, make sure you can pay in full and try your best to get the creditor to delete after you pay (get that in writing). Do some research about dealing with debt collectors on old debts before you proceed any further with this as the wrong actions can harm you.

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Correction to what I said above: Re: Any derogatory information will fall off your report in 7 years

Missed payments, late payments, charge-offs will fall off your report in 7 years. Other derogatory things like bankruptcy, tax liens, etc.  will stay on your report for 10 years unless it is a discharged chapter 13, I believe it will fall off in 7.

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jwsister

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STUDENT LOANS DO NOT JUST FALL OFF, and they remain collectable until paid in full, even if that means one's Social Security is garnished.  They cannot be discharged in bankruptcy, either. The student loan industry (and that is truly what it is!) managed to get these provisions in a revisioin of bankruptcy law some 20 years ago.  I know, because I had student loans and have played their game. 

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I did not know that jwsister, thank you for correcting me on that and giving the original poster the correct information. I just checked that out to learn a little more about defaulted student loans. I guess it depends on whether or not we are addressing Federal Student Loans or private student loans. Also I read that they cannot garnish SSI, but I assume that the original poster will eventually have regular social security and they could garnish that if we are talking about a Federal Student Loan. I never thought that federal defaults would have a different set of rules, but unfortunately it does not surprise me one bit.

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