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Statute of limitations on student loans in Mississippi

Fri Aug 15, 2008 01:08PM | By Tony

See more in Student Loans | Permalink | Email | Comments (0)

Q: What is the statute of limitations on student loans? I owe about $13,000 and live in Mississippi.

A: Unfortunately, statute of limitations on student loans simply doesn't exist, in Mississippi or any other state. While it is true that partial or full discharge of student loans is possible, the circumstances must be so severe, that is rarely happens.

According to the Higher Education Act, statute of limitations of no kind now limits lender ability to file suit, enforce judgments, initiate offsets, or other actions, to collect a defaulted student loan. Regardless of the age of the debt, statutes of limitation are no longer valid defenses against repayment of a student loan, in Mississippi or elsewhere.

Discharge or cancellation can take place under these conditions -

- You die or become totally and permanently disabled.
- Your school closed before you could complete your program.
- For FFEL and Direct Stafford Loans only: your school owes your lender a refund, forged your signature on a promissory note, or certified your loan even though you didn't have the ability to benefit from the coursework.
- You work in certain designated public school service professions including teaching in a low-income school.
- You file for bankruptcy. This cancellation is rare and occurs only if a bankruptcy court rules that repayment would cause undue hardship.

More information here. Also see student loan forgiveness programs.

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