Do Private Student Loans Go Away After 10 Years?

No, private student loans don’t automatically go away after 10 years. There are two key things to remember:

• Loan Forgiveness: Unlike federal student loans, which may offer forgiveness programs after 10 years of qualifying payments (like Public Service Loan Forgiveness), private lenders typically don’t have such programs.

• Statute of Limitations: This refers to the time limit for a creditor to sue you to collect a debt. It varies by state, ranging from 3 to 10 years. Even if the statute of limitations expires, the debt itself doesn’t disappear. The lender can still try to collect the debt outside of court through means like contacting you or selling the debt to collections agencies.

Here’s a breakdown of what happens after 10 years:

• The Loan Remains Valid: You’ll still owe the outstanding balance on the loan.
• Lawsuit Limitation: The lender might be restricted from suing you in court to recover the debt depending on your state’s statute of limitations.
• Debt Collection Attempts: The lender or a collection agency they sell the debt to may still attempt to collect the payment outside of court.

In Conclusion:

Private student loans are long-term obligations that you’re responsible for repaying until they’re settled in full. While the lender might be limited in legal actions after a certain period, the debt itself doesn’t vanish.