Once this amount of time has passed, the collections agency no longer has legal recourse to recover the debt. The statutes vary by state, but most last from three to 10 years after you’ve defaulted. There is one silver lining, too-private student loans have a statute of limitations. If the lender’s lawsuit is successful, they could get permission to garnish your wages.įortunately, unlike federal loans, some private loans can be discharged through normal bankruptcy proceedings. Student loan defaults typically stay on your credit report for seven years. Your default will show up on your credit report and be a red flag to future lenders.
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