I was shocked when I found out about current student loan law. I had thought that this was a free country and that citizens had certain protections.
Unfortunately, standard consumer protections were removed from student loans in 2005. Unlike other unsecured debts, there is no statute of limitations. I read of a woman in her 70’s who had taken out student loans back in the 1970’s. At that time statute of limitations laws included student loans, so she should have been protected. She admits that she should have paid back the $3000 she borrowed back then. But she’d had issues including a substance abuse problem. She’s now HIV positive. Yet she is having her Social Security garnished to pay these loans, which because of interest, now total over $15,000. The payments she’s making aren’t even making a dent because of the still accruing interest. She says she will never have it paid off. This is wrong. Seniors should not be dogged for the rest of their lives with payments they can’t afford.