It’s Q&A Fridays!
Q: I have a private student loan with AES. I’ve had it since 2005. It’s still on my credit report and it was recently charged off and sent to collections.
I understand that private loans are held to my state’s statute of limitations. I’m in NY, my state’s SOL is 6yrs, shouldn’t it be off my reports and past collection times right now? I shouldn’t have to pay a debt this old!
A: Good afternoon, Ty!
Hmm, the only time the credit bureaus will keep the account on your credit report is if it is still open during those 10yrs. In order for it to be deleted after 7yrs the status would need to be in a CLOSED status, and it will delete 7yrs from whatever event that caused it to close. As long as it is OPEN, it will still report. So… I would look at the payment history and see what the status has been during the 10yrs. Forbearance, Deferment, etc is still an Open status and it will extend both the reporting time and the statute of limitation time frame.
Anytime our student loans are in deferment/forbearance, the bill is not due and therefore the statute of limitations (SOL) is a non-factor; a debt will need to be in payment collection status – meaning they are sending you statements for payment – in order for the SOL to come into play. As long as it is in a non-payment collecting status the SOL is stopped. No debt is being collected on so the SOL clock has stopped ticking until it is back in repayment status..
I’d review the payment history, see if you have placed it in a non-payment status, when that status ended and start counting the reporting and statute of limitations from there.
Hope this helps!