Quick Answer: Time-barred student loan debt cannot be automatically removed from credit reports when the statute of limitations expires. Private student loan debts remain on credit reports for up to 7 years and 180 days from the last delinquency date, regardless of the statute of limitations period.
Question:
Dear Steve,
My daughter was unable to pay her private student loan and the statute of limitations will soon run out on her loan.
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So after the statute of limitations runs out can she get the debt wiped off her credit rating and how does she go about doing that?
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Answer:
Dear Eloise,
She doesn’t. When a debt is outside of the Statute of Limitations it means it can be raised as a defense if she is sued over the debt.
Debts can be listed on credit reports for up to 7 years and 180 days from the time it last went delinquent. So if your state’s Statute of Limitations is shorter than seven years it will remain on the credit report.
Also keep in mind, just because a debt is past the Statute of Limitations end date it does mean she can’t be sued or have a collector attempt to get money on the debt.
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How does my daughter get her debt erased.