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I Don’t Have Proof That I Paid My Student Loan in Full. Debt Collector is Calling. – Howard

Howard

“Dear Steve,

I recently recieved a letter from a debt collector stating that I owed money from a perkins loan that was made in 1992. I tried to call the school but they referred me to the collection agency. I do not have proof that I paid this debt in full some 10 yeas ago

Can these people start persuing me and put this information on my credit report now

Howard”

Dear Howard,

That’s pretty damn unfortunate that you don’t have any proof that you paid it.

Generally a bad debt is only reported for seven years from the date is was first listed, but like a lot of things about student loans, there are some subtle differences.

Notwithstanding paragraphs (4) and (6) of subsection (a) of section 605 of the Fair Credit Reporting Act (15 U.S.C. 1681c (a)(4), (a)(6)), a consumer reporting agency may make a report containing information received from the Secretary or a guaranty agency, eligible lender, or subsequent holder regarding the status of a borrower’s defaulted account on a loan guaranteed under this part until—
(1) 7 years from the date on which the Secretary or the agency paid a claim to the holder on the guaranty;
(2) 7 years from the date the Secretary, guaranty agency, eligible lender, or subsequent holder first reported the account to the consumer reporting agency; or
(3) in the case of a borrower who reenters repayment after defaulting on a loan and subsequently goes into default on such loan, 7 years from the date the loan entered default such subsequent time.

Your question sounds like the debt is not currently reported on your credit report. A debt collector could get it erroneously re-listed by reporting the wrong initial date.

As far as if it is collectible, if it is in default, it is collectible until you die.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

3 Comments

  • I requested my “paid in full” letter from Sallie Mae through their online system, and they “emailed it to me” after my last payment auto-closed the account and my access to all the usual options when I log in. Now when I log in, I can only get my 1099misc. I called and they said they emailed it to me. Infinite loop! I had to be firm and tell them to mail it.

    • I am looking for any help that I can find on this subject for my sister. She received her diploma from a local community college back in 1989 and all of a sudden a collection agency is going to start garnishing her wages. She doesn’t have proof since the normal person doesn’t keep cancelled checks, money order receipts, and confirmation #’s from online credit card payments for more than 5 years in the first place.
      I was able to find her student ID from the school and log into their online portal, but they are showing a zero balance and they are also showing that she never took a class there, but I think that it might have to do with the whole 1989 thing, but you never know. They have my information on file from roughly 10 years ago, so I expecting her info to be there as well.

      I did sign her up for fafsa.gov so we could get access to the student loan debt website and look for the name of the servicers and also possibly proof that her payments were completed back in 1995 or so.

      If you happen to read this, please respond and offer any other adivice that you have for dealing with these vultures at the collection agency as well as the government.

      I appreciate any help that can be offered by anyone who stumbles across this post..

      Thank you!
      Mellissa :”MJ”: Webster

  • I have just had the same thing happen to me, I paid the student loan about 15 years ago though. I have no proof I paid it, but I did pay the entire loan off. I think now, its the Governments way of getting some extra money…

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