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Student loan debt vs. debt to university.

Asked over 2 years ago - Pittsburgh, PA

I know there is no statue of limitation on a student loan debt, but what about debt owed to the school, for tuition for instance. If someone did not pay their tuition the debt would be to the university. would this be subject to the state's SOL laws?

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Attorney answers (3)

Richard George Larsen

Reputation Level 6

Answered over 2 years ago. Bankruptcy Attorney in Aurora, IL.

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Yes. A debt for unpaid tuition,fees, etc owed directly to the university is not a student loan. As such any statute of limitation applies and those debts are dischargable in bankruptcy.

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Peter Francis Geraci

Reputation Level 10

Answered over 2 years ago. Bankruptcy Attorney in Chicago, IL.

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Generally, there is no limitation on collection of any student loan made using any federal funds. If the debt was made with funds from Title 42, federal law says that state statute of limitations do not apply. Most student loans are made with some involvement of federal funds, so 20 U.S.C. 1091a applies to those loans.

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Peter Francis Geraci

Reputation Level 10

Answered over 2 years ago. Bankruptcy Attorney in Chicago, IL.

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If there is any federal funds involvement under 42 U.S.C., there is no state statute of limitation. Title 20 Sec. 1091a of the U.S. Code makes state statutes of limitations inapplicable to loans made using federal funds. Tuition and even grant repayment is viewed the same as a student loan for bankruptcy purposes. So the debt will never die if 20 U.S.C 1091a applies.

state statutes of limitation void for federally funded education loans and benefits

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