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Question
So my parents had agreed to take care of my student loan. Recently, I got my credit score from one of the free sites, look at my TransUnion report, and see that my student loan was "charged off as bad debt profit and loss write-off" in September of 2010 (I have found out about my parent's financial difficulties very recently).
I have not been contacted by debt collectors, nor have new debts come up in my credit report.
Now that I know about this, should I even attempt to pay off the debt? Morality aside, is this $20,000+ going to fall off the face of the Earth in 2 years?
Thank you for your time.

Answer
There are a couple of questions you need to answer:  have you received your diploma and transcripts?  Will you need a copy of either in the next two years?  If you will, the college has the right to withhold them until the loans are cleared up. You may want to check this website:  http://www.nolo.com/legal-encyclopedia/is-statute-limitations-private-student-lo.  There are no statue of libations on a federal student loan.

As to the moral dilemma, has your education help you in life with your career, etc.?  I am sure you know without me stating this but, paying your bills is always the best thing to do.  If you do not pay your student loan, interest rates will have to be increased to compensate and for every loan that does not get repaid, stiffer guidelines are put in place for future students.

I wish you the best with this situation.

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Ray A Miller

Expertise

I am qualified to answer questions on the following subjects: FDCPA, FCRA and HIPAA as well as medical collections, general collections and collection agency related issues. I trained these subjects at a nationwide collection agency and customer service call center and audited around 150 representatives for compliance to the laws. I have been in the Collections Industry for over 30 years. I feel that everyone deserves to be treated fairly and with compassion and that is the way I trained collectors. Even though I worked for a Collection Agency, I get great satisfaction in helping those who have been mistreated or in need of help with these confusing issues.

Experience

I was the Compliance Administrator with a nationwide collection agency and customer service call center-I have trained hundreds of collectors on the above referenced topics. I have been in the medical collections industry for over twenty years and research these topics on a daily basis.

Organizations
ACA International

Education/Credentials
Some college ACA Certified Collection Specialist

Past/Present Clients
I am retired due to medical conditions and spend a good deal of time keeping current on collection issues.

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