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My loans have been in default for over 5 years, with no action
January 17, 2016
2:32 pm
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January 17, 2016
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Hello, I’ll try to make this question brief:

I received two Stafford loans of $2600 each back in 2002, along with a couple of private loans. In 2003, I dropped out of school.

In 2005, I defaulted on the loans. I tried a few times to get back on track with a rehab program, but could never keep up. The private loans caught up with me, and I had to borrow a massive sum of money to settle the debt.

Finally, in 2008, I got serious about the federal loans and got out of default. For about 5 minutes.

In 2010, I defaulted on my federal loans again. But something happened–I haven’t heard from any collectors since the second default, and the government has never tried to garnish my wages. I have not had any tax returns withheld.

For years, I’ve carried this weight of knowing I have unresolved federal loans in default, and I keep waiting for the other shoe to drop. But it hasn’t.

Finally, today I register with nslds.ed.gov to find out the status of the loans. It shows both loans as “Defaulted, Unresolved” starting in November of 2010. I tried to login with the Dept of Education Collection department where NSLDS says my debt is currently being held. But the DOE website, myeddebt.ed.gov, has no record of my loans when I login.

My question is this: Why haven’t they come after me? Why doesn’t the DOE collections dept have the same records NSLDS has? Is it possible my loans somehow fell through the cracks? Is it because of the relatively small sum I owe ($5400)?

Have you ever heard of something like this before, and what action would you recommend I take?

Thanks for your time.

January 18, 2016
9:22 pm
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Indiana
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Very interesting situation and questions.

To be honest, I don’t really know. As you probably know, this site does not provide legal advice, and this is definitely a question for an attorney with an expertise in collections law in your state.

Many of the rules with student loans are set up by the federal government and the same in every state. When it comes to collections and the standards that must be followed, state law could play a big factor.

I hate to just leave you with an I don’t know, but I’d much rather give you no information than provide bad information that might end up making things worse.

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