Legal Question in Credit and Debt Law in California

Institutional student loan

A collection agency contacted me in July about 2

institutional student loans taken out in California in

1983 and 1984. Promissory notes that I signed back

then are 1 page forms headed ''retail installment

contract'' . Last payment was 1998 The school says

these are ''private institutional loans'' they made directly

to me. Are these loans collectable in perpetuity (as are

federal student loans), or are they subject to the 4-yr

statute of limitations on debt in California? Does

California or the federal govt extend special protection

to this type of educational loan to make it not subject to

SOL? How is the date of last activity determined--when

I made last payment or when school declared in

default? If latter, how can I find out this date, especially

if statute of limitations applies? Thanks.


Asked on 9/13/03, 4:04 am

1 Answer from Attorneys
Robert Mccoy Law Office Of Robert McCoy

Re: Institutional student loan

The statute of limitations would probably run from the date default was declared, not from the date of last payment. The California statute of lims on this debt is probably 4 years. However, be advised that so-called "private" loans are often insured by the Federal Government or are part of a program that the fed insures, which means they still cannot be discharged in bankruptcy. In order to properly evaluate your case I would need to see the documentation you have and get more info from you.

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Answered on 9/13/03, 4:26 pm


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