Legal Question in Civil Litigation in Kentucky

Default Student Loan; Statute of Limitations

I completed 90 of 163 lessons in a correspondence school in witch I returned all material and quit after before completing 60% of the course requirement. This was back in 1977.

The loan was federally insured and was paid in full by the US DoE ... I do not recall authorizing the payment.

In 1983 I was informed by a collection agency that I defaulted on a student loan and I owed the government money

Question: 1. Does statute of limitations apply? 2. Since I only finished 90/163 of lessons do I have to pay the full amount? 3. What are my options for dismissal?


Asked on 2/12/98, 7:13 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

No limitations on student loans

There is no statute of limitations on studentloans. None.

You may have a claim for a refund from the school (which would likely be barred by the statute of limitations), but you still owe thegovernment. They just made a loan and want to get paid back. If the school was a rip-off, that's your problem, not theirs.

How to stop collection? Pay the loan or work out a payment plan. Perhaps they will accepta compromise amount.

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Answered on 2/17/98, 3:07 am


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