student loan statute of limitations

okok1616 · #1 Mar 6, 2007, 07:44 PM

I was wondering what the statute of limitations is for student loans in alberta?
Can a creditor collect after that period? I also heard that after a certain time
period debts are wiped off of your credit report. Is this true and if so how long till
your credit is cleared?

ballengerb1 · Mar 7, 2007, 07:40 AM

There is a statute of limitations (SOL) on most debts but it varies depending on the type of debt and the locale.

Lowtax4eva · Mar 7, 2007, 07:54 AM

Have you been making payments? A statute of limitations for when the debt is wiped off your credit begins on the date of your last payment and is usually wiped off your credit a few years later (6 or 7... im not sure exactly), so if you made a payment last month then this would not apply.

By making payments you agree to pay the debt in full, but if you declared bankruptcy the debt would disapear, a student loan 10 years old or more gets wiped clean with a bankruptcy, loans less than 10 years old do not go away after a bankruptcy

CanadaStudentDebt.ca

ShadyJane · Mar 18, 2007, 11:53 AM

I had one of these from 1992 and honestly a $50 cable bill was more hassle. First get a copy of your credit file and see when it was assigned, it will be on your credit file in Alberta 6 years past that date as long as you do nothing else. But if you make payments, and they update the file, then it's 6 years from last activity. Crappy to say but once a collection is there it's not in your best interests to pay the collection agency at all.

Unless its a big loan, student loans are not typically sued for as they can be written off. Mine was with the Royal Bank and the only issue I faced was about 2 years ago when they sold it to a collection agency. Never did quite understand how that worked. Debt written off, yet sold to a collection agency.

Anyway, there are no laws in Canada that state you must talk to a collection agency and once the 6 years has past they cannot re report it. Also they must sue within 2 years of the debt unless collateral is provided. Since it's a student loan then they can't. Really the only thing it will affect in the future is if you ever apply for a student loan again. Gov. won't give you one.

Shady
Financial Force



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