Collections Law/Student loan


I have a bill collector chasing me and I just got a wage garnishment mail to my employer.

The loan is from 1990
It was about $4,000 for truck driving school

Now the judgment is for $9,980

How can this be?
Is it legal?
Can I negoiate a lower settlement?
Can I validate it?

I'll answer your questions one at a time:

How can this be? Apparently they sued you and got a Judgment. If this is a Federally Guaranteed Student Loan there is no Statute of Limitations on it and it cannot be discharged in Bankruptcy. If it is not a Federally guaranteed loan then there is some research you need to do. The questions you need answers to are:

1: When was the Judgment granted and in which State?
2: When was the last payment made by you?

If you compare the two dates you may find that either the suit was filed after the Statute of Limitations on the debt had expired, or the Judgment itself is beyond the Statute of Limitations on Judgments. How long the Statute of Limitations is depends on what State you are in. Based on what you find you may be able to get the Judgment vacated.

Is this legal?  Without the answers to the above 2 questions I cannot tell.

Can you negotiate a settlement? Maybe. If it is a Federally insured loan, probably not because you do not have the option of wiping it out in Bankruptcy.

Can you Validate it? The time for that passed a LONG time ago.

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Steve Katz


Debt Collection, Credit Reporting, FCRA, FDCPA, TCPA issues


Founder of Debtorboards, co-author of Debtsmanship, former Collector, Credit Counselor


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