Legal Question in Credit and Debt Law in California

Federal student loan

In 1988 I was attending a community college and had taken a National Direct Student Loan(Perkins Loan). The US dept. of education sent me a deferment request form in 1993 which I filled out and sent back because I was a fulltime student at that time. The deferment period was for 1 year. After that year, the dept of education never sent me another notice requesting payment for that $1,000. loan. Then just yesterday(9 years later) the dept of education sent me a letter stating that I must repay the loan in full plus the $500.00 accrued interest. Is there a statute of limitations, do I still have to pay back that loan? If the dept of education doesn't actually own that loan, would I still have to send payment to them? If I still have to pay, can I settle with them a reduced amount that I would make in one lump sum payment? Thank you.


Asked on 8/07/03, 3:42 pm

1 Answer from Attorneys
Paul Trump, Esq. Law Office of Paul D. Trump

Re: Federal student loan

Without looking it up, I believe the statute on that runs a long time, like 10 or 15 years. I have successfuly negotiated a few of them down, but it is really difficult. Usually, just start the payments over and get rid of some of the interest due. Good luck. Paul

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Answered on 8/07/03, 4:55 pm


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