Anyone in favor of renewing "Statute of Limitations" on Student Loans . . .

[defendandprotect]

In 1991, they removed the 6 year "Statute of Limitations" on Student Loans --

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For more information, please contact:
Deanne Loonin
National Consumer Law Center
617-542-8010
[e-mail]
The Student Loan Borrower Assistance Project (SLBA) is a program of the National Consumer Law Center (NCLC).
POLICY BRIEF
Equity for Government Student Loan Borrowers: Restore a Fair and Reasonable
Statute of Limitations
Rationale
The elimination of the statute of limitations for government student loans in 1991 placed
borrowers in unenviable, rarified company with murderers, traitors, and only a few violators of
civil laws. Statutes of limitations are the norm in civil and criminal cases. The Supreme Court
has repeatedly emphasized their importance, stating, for example that “Statutes of limitations
are vital to the welfare of society and are favored in the law. They are found and approved in
all systems of enlightened jurisprudence.” (Wood v. Carpenter, 101 U.S. 135, 139 (1879).
Despite the governmental and social interest in pursuing criminals, statutes of limitation apply
to nearly all federal criminal actions. The rare exceptions exist for those crimes that are
punishable by death, including espionage and treason. Other exceptions apply to the
prosecution of persons charged with absence without leave or missing in time of war and for
individuals fleeing from justice.
Statutes of limitations are essential first because there are very serious problems associated with
adjudicating old claims. For example, loan holders must keep records of government student
loans for a borrower’s entire life. Borrowers’ memories and records of payments made and
other defenses to loan payment disappear over time. This leads to a second, key justification
for time limits—brining some peace of mind to borrowers and finality to the judicial system.
The limitless pursuit of vulnerable student loan borrowers has serious human and financial
costs. Disabled and older consumers still face collection for loans they may have taken out
thirty or forty years ago. Even if they have no other assets or property, the government may
still take portions of their Social Security payments. The cost of collecting from those who
simply do not have much is often greater than the meager amounts, if any, which ultimately
come back to the government.
For more details, see the National Consumer Law Center Report, “No Way Out: Student
Loans, Financial Distress and the Need for Policy Reform”, available at:
http://www.studentloanborrowerassistance.org/uploads/File/nowayout.pdf .

[Bonhomme Richard]

1. Maybe the Gov. should forgive all student loans as part of.....

the stimulus package.
That would remove a huge burden from those trying to get their careers going and maybe would free up money for some older ex-students so that they might actually be able to save enough for a down payment on a house.Just a thought.
Then again, they may spend it all on Warcraft, X-Box and Playstation games.
Either way they will spend money.