2012年7月17日 星期二

Student Loans: Different Collections Rules


Student Loans
Most people who are looking for a way into into colleges and universities are not thinking about all the difficulties or possible causes for this type of loan to be a hardship. Student loan debt is something that will never go away on its own. Only in rare circumstances will a student loan be forgiven, even bankruptcy will not bring relief to this debt.
The creditor will usually make attempts to collect on unpaid loans for a few months and then use an outside collections agency to continue the process. Some companies will have their own inside collections departments who will try for a longer period of time before it processes out to a third party. The Department of Education does not always use third party collections, but when they do, the outsourced party earns more money per dollar collected from these loans and have been known to be more assertive with their collection attempts.Student Loans
Why are student loans so different?For starters, the funding behind your loan is from the government. These loans are not affiliated with any bank and therefore are not subject to the same collections rules. There are similar ways in which each can go about collecting the money owed, but the Department of Education, which funds these loans, have an unlimited amount of time to collect.
Regular bank loans and credit card debt have a statute of limitations. Depending on the state you live, these creditors will have a certain amount of time to try to get their money back. This time period is usually 7 years, but some states differ. Once the time limit is up, there can be no more attempts to collect the money. Student loans do not have a statute of limitations. In other words, the Department of Education can continue to attempt to collect on your loan until it is paid off.Article Source: http://EzineArticles.com/7108911Student Loans

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