Old School Debt

[pinkd]

What is the name of your state?State of Alabama.I have paperwork showing the dates a student loan should have been disbursed to Alabama A&M University, however, for whatever reason, the funds were not utilized. My son was a full time student during the period in question. I was never notified that there was a debt. I assumed that all debts to the school were paid with the student loans(all student loans are in deferment because I am currently attending college). Because we were never notified of the debt until three and a half years later, through a collection agency, does the statue of limitations apply and if so, are we responsible for late fees and collection fees? Do we have any other recourse? I am trying to resolve this matter appropriately as we are being hounded by a collection agency hired by the school. Is this a third party collection agency? Any response will be greatly appreciated.

 

[Ladynred]

In general, the is NO SOL on student loans, especially so if it was federally backed funds.

If the funds were never dispersed to the school, where did the money go ??
Have you attempted, in writing, to find out ??

Yes, its a 3rd party collection agency (CA) and they are bound by the FDCPA like all other 3rd party collectors.

 

[pinkd]

State of Alabama. The lender shows no record of the student loan. Why it was not utilized when received is beyond me. My guess is that the school returned it to the lender never applying it to the fees that were due. So, the debt is now with the school. Is there an SOL? Do I need to contact the school to inquire why the loan was not used when received? If so, how do I handle the collection agency?

 

[Ladynred]

In that case, I'd have to say yes, there is an SOL, probably falls under either written contract or promissory note. SOL on written is 6 years if it wasn't under seal (which is common in real estate transactions) or 10 years if it was under seal.