If Igot a student loan and then was incarcerated, can I get the 7% interest rate dropped due my incarceration status?

UPDATED: Jan 12, 2011

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If Igot a student loan and then was incarcerated, can I get the 7% interest rate dropped due my incarceration status?

I took out a student loan $2,500 in 1978; incarcerated 1979 until 2009. Was under the impression that father had paid this loan and was never notified nor was the bill forwarded to me. Found bill notice going through dead fathers estate 12/3/10. I called the Bureau of Student Financial Assistants, Washington DC on 1/10/11 and explained situation with no results. I owe $8,091.28. Besides not knowing I needed to follow through with this, I had no access to data or financial means to pay.

Asked on January 12, 2011 under Bankruptcy Law, Indiana


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

You need to file a complaint with the state agency in your state that handles educational loan complaints.  The fact this was a 1978 loan and nothing was done to send this to collections, sue you or find you is disconcerting.  You may not be held liable to pay this back if you can show the educational loan institution had the ability to locate you or had the ability to sue and did not.  The statute of limitations has probably run on this matter and considering the entity may no attempt to locate you should be a material issue to review in your complaint. Unless you were a minor when incarcerated, this is not your father's problem and that issue is not helpful to your case. On the flip side (playing devil's advocate), you could have resolved this matter through bringing it up to family who visited you, by contacting your father or even bringing up to your counsel of record to help locate someone with whom you could have spoken. Like I said, the statute of limitations may have run to now enforce this loan.  Your other option is to file a complaint through the credit bureaus (review your report through the three agencies) to whom this loan was reported and fight it by mail.

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