… when you can take advantage of your state’s statute of limitations on collecting a debt in arrears.
Outstanding article in NY Times on a student loan debtor who managed to get the whole thing cancelled by employing the techniques pioneered by visionary Private Equity legends like Bain Capital’s Mitt Romney. It’s just as patriotic when the little guy uses these methods to get a break.
{{ When the Supreme Court struck down President Biden’s plan to cancel up to $20,000 in federal student loan debt in June, I was one of 43 million people whose financial future took a hit. I had $10,459 in federal loans at stake.
In a coincidence of timing, I was no longer on the hook for the other half of my student loan debt — private loans I had defaulted on, totaling about $12,700. They were now uncollectable: outside the reach of debt collectors and the monstrous assemblage of complex financial instruments that claimed to own it.
The statute of limitations to sue to collect a debt in Pennsylvania is four years. I had waited it out. From my understanding, after speaking with a credit counselor and a few lawyers, the loans still exist on paper, but the entity that owns my debt had lost the only way to forcibly obtain the money, in court.
Whenever the collectors called, I asked for all communications in writing, per the credit counselor’s recommendation. Collectors contacted my father, the co-signer on my loans, even less. He didn’t respond to letters and grumbled with them to bug off on the phone.
After conferring with her colleagues, my credit counselor said the best option might be to wait for the statute of limitations to expire. }}
intercst
