Government Student Loan Debt - TransUnion Report

Submitted by jeremyjelder on Fri, 06/04/2010 - 03:14
Forums
Credit repair

I've made some pretty bad credit/loan mistakes in the past and am now trying to fix up my credit score.

I received my TransUnion report and there is a listing under "Installment Accounts" for a Government Student Loan I defaulted on in 2001. The total "high balance" is listed as $5836.

It's listed as Opened: 12/02/2001 and Reported: 02/06/2010.

Though it's condition is listed as "Closed Account (Transferred)" the two-year payment history is all green (as in paid) all through 2009 and 2010, which is odd, because I've never paid it.

1. I live in Ontario. Does the statute of limitation not apply to student debt (I thought I'd heard this before, but I can't find a heard answer anywhere).

2. Does this mean it's being reported to TransUnion by the government somehow? Why would the last date reported by 02/06/2010 and how do I figure out who's doing this reporting?

3. Do I have any options in removing this from my score with a debt validation or something like that?

4. If not, who do I contact about paying it off (if that's my only recourse)?

Thanks for your time!

Aaron

Hi jeremyjelder,

Federal student loans do not have any Statute of Limitations (SOL) on them. However, private student loans fall under the SOL. Private student loans are those which have been given by private banks, and not by the Federal government.

As far as I understand from your query, the account may have been handed over to a collection agency. Unpaid Government student loans can get handed over to a collection agency, if not forgiven. So, can you tell whether or not there are any colelction agency listed against this account? To find out who is doing this reporting, check your credit report?

Student loans can get canceled if you agree to perform volunteer work, or teach, join military service, etc.

You can send debt validation letter to the collection agency, if you are unaware of the outstanding debt amount. Send the letter through certified mail, requesting a return receipt. You can remove this from your report only after you pay off the debt.

Thanks,

Aaron

Fri, 06/04/2010 - 08:11 Permalink