Fitzgerald & Campbell examine a growing question around the statute of limitations on student loan debt; which has been a growing concern amongst millions of Americans.
Santa Ana, California, USA , Aug. 25, 2021 (GLOBE NEWSWIRE) --
On August 4, 2021, SoFi published an article titled “Is There a Statute of Limitations on Debt?” Fitzgerald & Campbell, a professional law corporation, says that SoFi got it wrong when it concluded there is no statute of limitation on student loan debt. Because it is so clear that there are statutes of limitations on private student loans, the firm questions the motivations of SoFi, a lender whose student loan portfolio contains only private student loans.
Gregory Fitzgerald, a Managing Partner at Fitzgerald & Campbell, said that the clear answer to the question: “is there a statute of limitations on student loan debt,” is yes. Statutes of limitations do not apply to federal student loans because the federal government does not file lawsuits to collect amounts due forcibly. Therefore, lawsuits and statutes of limitations have no application to them.
SoFi states, “And some debts, like student loans, are not subject to statutes of limitations. That means that lenders or debt collectors are not time-barred from suing you in court to collect the money you owe, no matter how long ago you stopped paying on the student loan debt.”
However, Fitzgerald says that taking the position that all student loan debt is not subject to the statute of limitations is incorrect. Private student loans are subject to the statute of limitations. “SoFi knows better than to publish an article that says there is no statute of limitations on student loan debt,” he said.
“Private student loan creditors do not have that same luxury as the federal government and, therefore, must file lawsuits and win a judgment before they garnish wages, attach assets, etc. Thus, statutes of limitations in the student loan context apply to private lenders at all times,” Fitzgerald said. “It is only in defense of a lawsuit that the statute of limitations has any application at all.”
Fitzgerald finds it concerning that SoFi got this so wrong. Fitzgerald says it begs the question of SoFi’s intent. “Did they just get it wrong or were they attempting to mislead the readers of the article? Keep in mind that most readers are either already indebted to SoFi or contemplating it.” He encourages anyone seeking information about a topic as important as debtors' rights to seek the assistance of a professional to understand those rights fully. “Do not ask your creditor,” he says. For those with little to no access to competent and affordable legal counsel, he recommends thoroughly researching the subject from multiple sources before making any financial decisions.
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CONTACT: Name: Gregory Fitzgerald, Esq. Organization: Fitzgerald & Campbell A Professional Law Corporation Address: Santa Ana California Phone: 855 709 5788