Private Student Loan Statute Of Limitations California (2024)

Here’s a breakdown of the statute of limitations on private student loans in California:

Key Points

• Statute of Limitations: In California, the statute of limitations for private student loan debt is four (4) years. This means creditors have four years from the date of your first missed payment to sue you to collect the debt.

• Starting Point: The four-year clock starts ticking from the date your loan goes into default (the first missed payment that triggers default).

• Types of Contracts: The four-year statute of limitations applies to written contracts. However, if the promissory note is a negotiable instrument, the statute of limitations can be six years.

• Tolling the Clock: There are certain events that can temporarily “pause” or “toll” the statute of limitations, such as:

  • If you leave the state of California
  • If you file for bankruptcy

Important Considerations

• Debt Doesn’t Disappear: Even if the statute of limitations passes, the debt doesn’t magically disappear. Lenders may still try to collect, but they can’t sue you in court.

• Credit Report Impact: Private student loans typically fall off your credit report seven years after the date of default, regardless of the statute of limitations.

What to Do If You Have Old Private Student Loan Debt

1. Don’t Ignore It: Ignoring the problem won’t make it go away.

2. Check Your Records: Determine the default date of your loan to see if the statute of limitations has expired.

3. Seek Legal Advice: If you’re unsure of your situation or how to proceed, consult with an attorney specializing in debt and consumer law.