statute of limitations on unpaid student loans
Question Details: I have been unable to pay for my student loans for several years due to illness and having to pay for doctor bills because of my illness. I am still unable to pay for my student loans as I am still ill and seeing doctors. Is there a statute of limitations on my obligation to pay back the student loans?
Unfortunately there is currently no statute of limitations however there are signs that there may be changes in the next year or two to how long one is expected to pay in certain circumstances.
The previous respondent is correct, however there is generally a prohibitively high bar for bankruptcy discharge of Student Loans. If you are very ill you may stand a better chance than most, but this is by no means guaranteed. Chapter 13 would allow you to create a payment plan over several years but relies on you having income.
No, there is no statute of limitations. If you can't pay off your student loans you might consider filing for bankruptcy. Typically, these loans are not dischargeable unless you can prove that repaying the loan creates an undue hardship on you or your family.
Proving hardship usually requires showing that you can't provide a minimum standard of living for yourself and your dependents if you have to repay the loan. Some courts will discharge part of the loan on a showing that repaying it all would be a hardship.
I though of something else that may be of help to you - cancellation of the loan.
In certain limited circumstances, you may be able to cancel your student loan, meaning that you no longer have to pay it. Doing this is not easy; you'll have to meet specific conditions depending on the type of loan you have. Often, when you cancel your loan, the government will also reimburse you for payments already made, and help clean up your credit record. In some situations, you won't be able to cancel the entire loan, but you may be able to get rid of a portion of the loan. Typically economic hardship or some type of disability would qualify.
Some circumstances qualify you for cancellation only, some for both cancellation and deferment, and still others for deferment only. The Student Loan Borrower Assistance website at www.studentloanborrowerassistance.org discusses conditions for the cancellation or deferment in more detail and how to apply for such a cancellation. You can also contact your loan holder or the Federal Student Aid office (800-621-3115 or http://www.ed.gov/offices/OSFAP/DCS/index.html) to determine if you qualify for cancellation.
Best of luck.
