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"So, the statute of limitations may be extended by the loan company when they use a deferment."
She did not ask for a deferment, any deferment they gave they made that decision on their own without request from the borrower, nor approval from her.
Are you saying then that if they continued to defer for 20 years, and then made a request for start of payments the SOL would start then? It seems unlikely that would be legal.
Do you have any case law that would support your position? We are being aggressively perused by a collection attorney now and the SOL, if calculated from the normal (6 months after leaving school you must start making payments) time-frame would expire in just a few months.
Awesome information, ok, this information brings up just a couple more questions. And since we're digging into a more robust answer, I'll bump up the value of the question.
1. You said, "In your case, the deferment is a right reserved by the lender. Thus, the payment has not yet become due." Where in law does this come from? Again, what if the lender "forgot" about the loan for 20 years, leaving it in deferment and then said "now 20 years later...it's due". Wouldn't this become a stale debt (expired SOL) under some, more applicable consumer protection law to prevent debt aging?
2. Since my wife is living in NM now, wouldn't she have to be sued here, and the law of this State would apply. Are there any conflicting / different wording in the NM SOL statute that would give her a different timeline on the SOL here? I think I read somewhere that the owner of the debt can choose the longer of the two SOL's if different (State the contract was executed and State of current residence, but I'm not totally sure on that).
3. "Where contract obligations are payable by installments," Since there aren't "Installments" in a student loan, ie: It's not like a car or home payment that has a fixed time of repayment, (fixed number of payments) does this apply to us? I know it's not open-ended like a credit card but it's also not like an "installment" loan... what's your thoughts on that...does it fall under a different category in the SOL statute (something other then an "installment loan"?
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