Determining if a student loan is public or private is confusing.
There are many types of student loans, and the rules about them tend to change.
The schools make this worse because they often do not explain the student loans when the people agree to them.
Usually the best place to start with understanding your student loans and finding what can be done with them is finding out whether they are public student loans or private student loans.
HOW DO I FIND OUT IF A STUDENT LOAN IS PUBLIC OR PRIVATE?
- The best way to find out if your loans are public or private is to look at the National Student Loan Data System.
This is a website where the federal government will tell you about the status of all of your public student loans.
Public student loans are those made by the US Government.
- If you log in to the NSLDS and see a loan, then it is a public loan
- If the loan isn’t on your NSLDS page, then it is probably a private loan
Companies like Wells Fargo or Discover make private student loans.
- The best way to find private student loans is through a credit report, and you can get a free credit report from the FTC’s website
It is important to know that a credit report won’t tell you whether the loan is public or private, and that both public and private student loans appear on credit reports.
- If the loan is on your credit report, but not on the NSLDS then it is private
- If it is on NSLDS, then it is public
- If it is on both NSLDS and yourcredit report, then it is public
Where do public student loans come from?
The federal government originates public student loans.
People in Minnesota often get these through Great Lakes, Nelnet, and other guarantee agencies and servicers.
Public student loans have an interest rate set by congress, which can change from time to time.
Do public student loans have a statute of limitations?
No.
Here’s what you need to know:
- Public student loans do not have a statute of limitations
- The government has an unlimited amount of time to collect these loans from borrowers
- The government can even collect them from a borrower’s Social Security after the borrower retires
- Public student loans are not dischargeable in bankruptcy
What if you can’t pay off your student loans?
The most important thing about public student loans, however, is:
- There are lots of repayment plans that can help keep your monthly student loan payment affordable
- Some of these programs even allow for the eventual forgiveness of any unpaid balance on the loan
These programs can be the difference between a life of debt and living paycheck to paycheck, and being debt free.
PRIVATE STUDENT LOANS
Private student loans are more like traditional instalment loans.
- They require monthly payments for the life of the loan, and have very few programs for debt relief or loan forgiveness
- These loans come from private financial companies like Discover ,Wells Fargo or Sallie Mae
However your Sallie Mae loan could be either public or private, and you should look at the NSLDS to be sure.
Many students are given private student loans by their schools without realizing that this is happening.
- As of March 2018, there are no programs for forgiveness of private student loans or programs to lower the payments, these loans can be a financial disaster
Like public loans, private student loans are not dischargeable in Chapter 7 bankruptcy or Chapter 13 bankruptcy.
Do Private Student Loans have a statute of Limitations?
- One good thing to know about private student loans is that they do have a statute of limitations
- In Minnesota, the limitations period for these loans is 6 years from the date of last payment or acknowledgement
You should speak with a lawyer if you want to use a statute of limitations defense against a private student loan.
Proving that this time has passed can be difficult.
Conclusion
If you’re struggling paying back your student loans or are having money taken from your Social Security to pay back student loans, then we might be able to help you.
Why not Contact Us at 612.824.4357 or visit one of our offices in Minneapolis, St Paul, Blaine, or Brooklyn Park, and tell us how we can help you?
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