The statute of limitations for private student loan debt in Texas is generally four years. Here’s what you need to know:
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What is a Statute of Limitations: This law sets a time limit within which a lender can sue you to collect on a debt. After the statute expires, they technically cannot sue you for repayment.
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Texas-Specific: Private student loan debt falls under a four-year statute of limitations in Texas.
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When Does the Clock Start? Typically, the four-year period begins from the date your loan went into default (when you missed the last payment before the lender declared it in default).
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Restarting the Clock: Important! Certain actions can restart the statute of limitations clock, such as:
- Making any payment on the loan
- Acknowledging the debt in writing
Key Considerations:
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Seek Legal Advice: Statutes of limitation on debt can be complex. It’s always best to consult with an attorney specializing in debt collection law for advice on your specific situation.
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Don’t Ignore the Debt: Even if the statute of limitations has passed, the debt may still exist. This could impact your credit report.
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Check Your Documentation: Review your original loan agreement carefully to understand the specific terms and how default is defined.
Where to Find Help
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Texas Attorney General: The Texas Attorney General’s office has resources for consumers regarding debt collection: https://www.texasattorneygeneral.gov/
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Legal Aid Organizations: Several organizations offer free or affordable legal aid services in Texas.
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