Federal student loans have no statute of limitations – meaning unpaid federal student loan debt from decades ago can come back to haunt you, even long after you have retired.

By Jennifer Parker | Pacific Collection Group | September 17th, 2019

Back in June 2019, when Democratic presidential candidate Bernie Sanders revealed a plan to cancel all $1.6 trillion dollars of student loan debt in the United States, 45 million Americans cheered – particularly those who had taken on federal student loan debt.


American students have long carried the burden of their education; while some have the fortune to pay it off in their younger years, there’s no denying that the debt has spiraled to crisis levels. Rather than only being a millennial issue, seniors are also feeling the pressure.


According to the Consumer Financial Protection Bureau (CFPB), Americans over 60 owe more than $86 billion in unpaid college debt – and as a result, some are seeing their Social Security benefits slashed.


The result?


A debt from youth that follows people to their grave – and worse, many of these seniors, they may have thought their loans were long gone. But just like in a horror movie, the zombie debt rises when you least expect it.



What Is Zombie Debt?


The majority of debts are covered by a statute of limitations, which essentially fixes a time period during which creditors are allowed to collect on their debt. Once that time period expires, the debt is forgiven.


However, federal student loans are not subject to this statute – which means that those with federal student loan debt are on the hook forever. This often comes as a shock, particularly to seniors, as they may have believed that there was a statute of limitations.


They’re not wrong – there was until 1991, when Higher Technical Amendments of 1991 was passed. Since then many courts have ruled that the law applies retroactively: in other words, pre-1991 federal student loan debt is still collectible.



Planning Your Attack Against Zombie Federal Student Loan Debt


The last thing you should do is ignore your debt as you will default, impacting your credit score. If that wasn’t punishment enough, as noted above, the federal government can collect its debt from your Social Security benefits. But that’s not all: your salary and tax returns are also at risk.

Because the statute of limitations doesn’t exist for federal student loan debt, there’s little that you can do about this but start paying. While there are programs to defer or forbear, these don’t whittle down your debt but give you more time.


After decades, it’s likely you don’t remember much about the debt – but you can track down your loan at the Department of Education’s online portal, MyEdDebt. From here on out, you can look at payment plans, such as income-driven ones which can last 20 to 25 years and let you pay a percentage.


With only Sanders providing a glimmer of hope for federal student loan debt relief on the horizon, graduate millennials and seniors alive are well-advised to stay on top of their debt and avoid defaulting.


Zombie debt – especially retroactive zombie federal student loan debt – cannot be considered fair, but nevertheless, it is something that can and will affect you, which means you will need to prioritize it to minimize its effect on your life.



The quicker a debt collector can collect the debt owed the more successful their company will be. Full-Scale Debt Collection Agency Pacific Collection Group has just shaken up the debt collection world for the better with the release of their breakthrough new software.


San Francisco, CA


It is hardly a secret that debt collection can be a challenging industry and that agents and firms working in it are always looking for something to help give them a competitive edge. The good news is Pacific Collection Group is answering the call with the recent announcement of the release of their remarkably powerful, brand new online hosted debt collection software. The software is already being credited with boosting efficiency at all levels significantly for the forward-thinking companies who have been quick to use it.


“We are deeply experienced in the debt collection world and we saw an opportunity to provide a tool in our new software that is nearly guaranteed to leave agents impressed,” commented a spokesperson from Pacific Collection Group. “By being able to host the software online it also frees up other resources that would potentially be tied up and help keeps costs lower than they would be otherwise.”


According to the company, the new software does not have a high learning curve and it can help in a wide range of different debt collection needs.

Pacific Collection Group also is happy to offer location and skip tracing services, along with credit bureau reporting that covers Experian, Equifax, and TransUnion.

The early reviews for the new online hosted debt collection software has been completely positive across the board.



Michael S., recently said in a five-star review, “We thought we were running smoothly with our debt collection methods but we know there is always room for improvement. We implemented the debt collection software from Pacific Collection Group and it has really opened new doors for us. We are very impressed, to put it mildly.”


For more information be sure to visit https://www.pacificcollectiongroup.com.


The news site hosting this press release is not associated with Pacific Collection Group. It is merely publishing a press release announcement submitted by the company, without any stated or implied endorsement of the product or service or information above. 


About Pacific Collection Group

Pacific Collection Group is a collection agency dedicated to smooth and worry-free financial resolve for both businesses and their customers.



Consumer borrowing jumped at it's fastest rate since 2017, driven by credit card usage.



Consumer borrowing rose by $23.3 billion in July following a $13.8 billion progress in June, the Federal Reserve reported Monday. It w

as the largest monthly gain since a $29.9 billion leap from November 2017.


A rise in borrowing caused the July profit from the users of credit cards, which climbed in July by roughly $10 billion after having dropped by $186 million in June.


Borrowing from the group that covers student and auto loans posted a substantial profit, rising by $13.3 billion in July after a 14 billion June growth.


Consumer borrowing is carefully watched.


The market has struck headwinds this year in areas like manufacturing and export earnings, reflecting uncertainties due to President Donald Trump's trade war with China and a economy that was slowing.


However, strength has cushioned those shocks in consumer spending, which accelerated into the fastest pace in five years from the spring following a poor start to 2019. Consumer spending accounts for approximately 70 percent of U.S. economic action.


Economists are searching to continue to be strong for the remainder of this year, aided by increasing wages and the unemployment rate in almost a half of century.


Economists are predicting GDP growth will average approximately 2.


The monthly charge report of the Fed doesn't cover any debt or mortgages.

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