In Florida, the statute of limitations for private student loan debt is five (5) years. This applies to debts based on written contracts, which most private student loans fall under.
Here’s a breakdown of the key points:
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Timeframe: After five years from the date of default (when you stop making payments as agreed), the lender generally loses the right to sue you in court to collect on the debt.
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Exceptions: There can be exceptions to this timeframe. For instance, if you make a payment on the loan or acknowledge the debt in writing, the clock may reset, restarting the five-year window.
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Debt Still Exists: It’s important to note that even if the statute of limitations expires, the debt itself doesn’t disappear. You technically still owe the money. The lender can still:
- Report the debt to credit bureaus, negatively impacting your credit score.
- Sell the debt to a collection agency which may continue collection efforts.
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