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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41220
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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Hello, I would like to geto some information concerning a student

Resolved Question:

Hello, I would like to geto some information concerning a student loan that I took twenty years ago for bartending school. I think the original loan amount was $3000. Now between interest and penalties it is in collections for a $$8090.71 I am unemployed and unable to pay this loan. However my uncle is willing to lend me up to $2,500 if they are willing to settle this loan. How do I go about this? Do I ask for a settlement offer in writing? Thank you.
Submitted: 6 years ago.
Category: Legal
Expert:  Dimitry K., Esq. replied 6 years ago.
Thank you for your question.

Just a few facts--this loan was taken out in new York? Did you admit to them that the debt is yours? When, if ever, did you make a payment on the debt?
Customer: replied 6 years ago.
Hi Dimitri, yes this loan was taken in NY. I made a few payments on it twenty years ago when I took the loan and nothing after that. I guess that would be the same as admitting to it.
Expert:  Dimitry K., Esq. replied 6 years ago.
Hello back,

The reason I asked about payments was because if the debt was privately held AND you did not make any payments within the past 6 years, legally they cannot collect from you. Please permit me to explain.

New York as a 6 year statute of limitations on debt collection. That means that if you don't "assume" the debt, admit to it, or make payments, once those 6 years pass the holder of the debt cannot collect. That means that you may attempt to simply contact the credit bureaus and remove the debt because it's outside the statutory period. If they contact you, you can tell them to take you to court and prove that the debt is within the statutory period (or within the past 6 years). If they cannot, the debt is wiped off.

Hope that helps.

Edited by Dimitry Alexander Kaplun on 7/1/2010 at 5:24 AM EST
Customer: replied 6 years ago.
The clients name isXXXXX of Education, from what I understand they can haunt me until I pay them. They have threatened to garnish wages and take any income tax refunds. Does your answer still apply to the Dept of Education? Thank you.
Expert:  Dimitry K., Esq. replied 6 years ago.
That is different--a federal loan is a different animal (which is why I asked if the debt was private or not).

No, my answer does not apply to them. The best way to speak with them is to contact them directly and offer a payoff of the full debt if you make the substantial investment. Just be aware that they may choose to not discharge--it is the government, after all.

I am sorry.

Edited by Dimitry Alexander Kaplun on 7/1/2010 at 5:42 AM EST
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