The Statute of Limitations Has Expired on My Sallie Mae Student Loans

“Dear Steve,

I took out 4 student loans in 2005, 2 Federal and 2 Private. I am current and making payments on the Federal, but my 2 private loans with Sallie Mae have more than tripled in size since 2007.

Sallie Mae is trying to say I made a payment in 2009, but there is conflicting information on my credit report stating that in 2009 at the time this payment was allegedly made, I was 120 days past due, and they charged it off a month later.

They refuse to give me the proof that I made a payment then, and just keep selling my loan. They have tried to sue me once, and I declared Chapter 13 bankruptcy, until I could figure out what I needed to do. I was enrolled in this for about 3 months, and then discharged it.

They have not tried to sue me again, and I am pretty sure I have not made a payment to them since at least 2008. The statute of limitations here in MN is 6 years.

But there is still a collection company associated with these 2 loans. This collection company is new, and the last one tried to settle with me for a lump sum payment for a super low price. But I still don’t have the money to make that payment.


Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

Dear Amy,

I believe your concern is if the statute of limitations has expired and thus these old student loans could be cleared by filing bankruptcy. That’s really a question you have to ask your bankruptcy attorney.

Statute of limitation issues are not as clearcut as one would hope. Payments and time out of the state can change the date the debt can be discharged with a bankruptcy for being outside the statute of limitations.

If the Sallie Mae private loans are actually outside the statute of limitations then you could file a chapter 7 bankruptcy and have the debt cleared in less than 90 days.

See also  $60M in Student Loan Refund Checks: Is Yours in the Mail?

Again, these are great issues to discuss with your bankruptcy attorney.

Please post your responses and follow-up messages to me on this in the comments section below.

Damon Day - Pro Debt Coach

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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.
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