March 9, 2020 at 11:55 am #66082
I went to my intake appointment and the only thing really standing in my way is a bunch of defaulted student loans that are well over 2 years old and past the statute of limitations (SOL) in the state of Ohio. My intake counselor told me I would need to pay those off because they are student loans and can garnish my wages and put a lien on the house. I explained they are not federal student loans, didn’t think about the statue of limitations at that time.
I searched on the forum for some information and there was a bit of conflicting information. A post in 2017 said they needed to paid or at least settled, then another post in 2019 said that if they were in charged off status (which mine are). then a LOE would be sufficient. Of course, whether or not I have to pay them is going to make a HUGE difference between being able to qualify sooner rather than later. Based on what I’ve read on the SOL in my state, once collectors know they have no legal way to force payment, they are more likely to settle. I’ve gotten so many settlement offers years ago and hadn’t heard anything from anyone for years. Which is why I was surprised to hear about it now.
Side note: PLEASE DON”T RELY ON CREDIT KARMA FOR CREDIT REPORTS!! I was using them to keep track of my reports and these were nowhere on the TU/Equifax reports they show.
My counselor scheduled my follow-up appointment for September, which was a little disappointing.
Is there a definitive way to know what I should do? I would hate to pay thousands to pay/settle these if they are 1. more than 2 years old, 2. past SOL, 3. could be explained away with a LOE.
ANY HELP IS APPRECIATED!!March 9, 2020 at 12:01 pm #66083
These are PRIVATE student loans – to clarify
My counselor said it wouldn’t matter if they are private, because all education loans are the same. But they are not.March 9, 2020 at 1:26 pm #66087
I believe it has to do with when the last activity is. The last activity needs to be 2 years old. The collection could have been reported 5 years ago but if you receive a settlement notice today then that collection in effect is brand new. If you are still able to settle you might need to. For what it’s worth I had a repossession that was 5 years old on my credit report and it showed I owed on the car. A LOE was indeed sufficient but then, they couldn’t garnish my wages or put a lien on anything for it.March 9, 2020 at 2:29 pm #66096
@nelsont thank you for your response! I guess I am confused about her saying that *because* it’s an educational loan, that it doesn’t matter if it’s private or federal. I haven’t received any letters but if the collection activity was within the last two years, I don’t mind working to get it taken care of. I’m just concerned that the last activity is over two years ago, the debt is over two years old, it’s not a federal student loan, and she is telling me I need to pay it when maybe I don’t?? I’m willing to do the work and pay what I need to, I just want to make sure I REALLY do need to.
These being private loans and past the statute of limitations wouldn’t be able to garnish my wages or put a lien either, which I wasn’t sure she understood.
This is by no means bashing her, I really like her! So just want to make that clear 🙂March 9, 2020 at 7:45 pm #66106
@nelsont I am looking at one account on my CR:
Date Opened, July 27, 2005
Date Reported, January 31, 2020
Date of First Delinquency, May 1, 2016
Delinquency First Reported, August 1, 2016
Wouldn’t this charge-off be past the two year mark?March 9, 2020 at 8:02 pm #66107
The last report was 6 weeks ago. That might be what they go on.
What is your sol? In many cases it’s 5 to 7 years which could be why they are still reporting. It’s only been 3.5 since the first report of delinquency.March 9, 2020 at 8:30 pm #66113mrstaylorMember
I’ve been trying to get clear answers on the “24 months” limit and my MC said to refer to the date opened and when NACA pulled your credit. BUT this is the same MC who’s stating we need to pay medical bills that are over 3 years old. Like you said, I really like her as well and will do the work but if it doesn’t make sense or I don’t HAVE to I rather put that money to something else.
From what you’ve explained an LOE should be sufficient.March 9, 2020 at 8:33 pm #66114
@nelsont SOL is 6 years in my state. It also appears that the lender is not the same as the original lender I went through in college, so maybe the debt was sold? Because I graduated in 2008 and never made payments, so not sure how the first date of delinquency is 8 years later. Even still, wouldn’t it be past the 2 year charge-off period? I am having trouble understanding how this charge-off would be different from any other charge-off.
Edit: IF the date of first delinquency is what determines the 2 year cutoff for charged off accounts. Otherwise, the Jan 31 report date is just the C/O reporting to the credit bureaus, not necessarily date of last activity.
Again, I’m thoroughly confused, so I apologize if it seems I’m going in circles 🙁
March 9, 2020 at 8:41 pm #66118
- This reply was modified 8 months, 4 weeks ago by Psalm23.
@mrstaylor if it’s date opened, then it’s like 2005-2007 for most of these! They pulled them today, so I would think it would mean any new charge-offs from Mar 2018 and on would need to be addressed.March 9, 2020 at 9:30 pm #66119
Mortgages get sold left and right. I wouldn’t be surprised if other loans do too.
In actuallaliity then I believe your statute of limitations is June 2022. So 27 more months.
Charge offs are when collections stop. Your report will actually read charge off and they will stop reporting. In this case they reported in January. So they haven’t charged it off. Some companies never charge off like my repossession from 2014 that’s still reporting every month.
I think you are confusing collections and charge offs. If you don’t pay a bill they report as delinquent. If you don’t pay it for a while they sell it to a collection agency. If you still don’t pay it the collection agency can stop collecting if they feel it’s not worth it. But a charge off is an official designation and needs to be reported as such. It doesn’t just happen. There’s government paperwork associated.March 9, 2020 at 9:50 pm #66121
@nelsont thanks for your response. My report states the account is Closed, Charged Off, and then lists all the dates, including reporting a monthly Charge-Off status. I was just going off what the workbook said (charge-offs/collections that happened in the last 24 months). These accounts clearly state they are charged off accounts, they are not collections. I think like your repo, they are reporting the c/o status every month. I guess my thing is that if you were able to explain with a LOE even if they were reporting monthly. I would think the same would apply here.
These loans are still listed under the installment loans section of my report and the type is Education Loan. My counselor said that I would need to rehab them but that’s not an option for private loans. Just a little frustrated with this, but I certainly appreciate your help 🙂March 9, 2020 at 10:30 pm #66123
Unfortunately my repo is not charged off it’s saying I still owe 13k which is why I need to go through naca.May 18, 2020 at 6:09 pm #68180BlessedMom88ParticipantMay 20, 2020 at 5:55 pm #68272
@BlessedMom88 Hey! So I’ve not had any luck on getting some clarification. I called Member Services after my intake to get more information, since these are not federal student loans but the rep I talked to told me she wasn’t familiar with private student loans. I was going to attend an ATD event back in March before it was cancelled, because I just wanted to talk to someone in person to show them exactly what I was seeing on my credit report. I just signed up for the virtual ATD event this week and am hopeful to get some information.
What I am just so confused on — and I have yet to get a definitive answer — is that they were charged off over 24 months ago and reported as charged off on my credit reports. The original lender is not contacting me, they don’t send letters or statements or anything. But they report every month as a charge-off and have done so for years. I get random letters from a different collection agency every few months, but none of these are on my credit report either. I would think an LOE is enough for these.
My MC told me to call and have them rehabbed but that’s not an option for private loans. I feel like these are being treated like federal student loans but they are private debt that just happens to be a student loan. I’m frustrated because this is the only thing I need to address, other than some collections that are a few hundred dollars that if needed, I can pay off.
So I’m hopeful that with a virtual meeting, I can get some answers right away. I can let you know what I find out. I am scheduled for a meeting on Friday.May 20, 2020 at 6:00 pm #68273
Also, my action plan in my WebFile says for Charge Off and Collections, to “provide documentation verifying that this collection/charge off” is paid in full or “proof that it was charged off over 24 months ago.” Not sure why this doesn’t apply to these loans.
- This reply was modified 6 months, 2 weeks ago by Psalm23.
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