S.O.L

I attended a college in my home state of Alabama in 1990 and now this school is trying, through a collection agency, to collect after its been ten years since. Please advise as to Alabama's S.O.L

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face=" Arial, Verdana, Helvetica">quote:</font><HR>Originally posted by Poochman1:
I attended a college in my home state of Alabama in 1990 and now this school is trying, through a collection agency, to collect after its been ten years since. Please advise as to Alabama's S.O.L<HR></BLOCKQUOTE>


My response:

Your S.O.L. is 6 years on a written contract, measured from the date of last payment, if any.

Ten Crucial Things to Know About Your Student Loans

For anyone with student loan debts that could scare the stripes off a skunk, here are ten sage tips to keep in mind.

1. Know what kinds of loans you have.
The types of loans you have determine payment terms and when you must start paying them back. Most loans give you six months after leaving school before you must begin making payments. A few loans, however, require payments to begin immediately.

2. Keep in touch with your lenders--and ask for help if you need it.
Stay in regular contact with loan holders, even if you're having trouble making payments. They will help you avoid defaulting on your loans. Always open and read all mail about your loans, and always notify your lender of a change of address. Failure to do so might inadvertently cause you to default on your loans.

3. Do your math.
An important part of managing your loans is figuring realistically how much money can be put toward your loan debts each month. Keep in mind that most standard repayment plans require $125 a month for every $10,000 borrowed. If you have $40,000 in loans, your standard monthly payment will be approximately $500 per month--steep if you're just starting out in an entry-level job. If the standard monthly payment is not realistic for your budget, talk to the holder of your loans about some of the below options.

4. Consider a graduated repayment plan if you can't afford the monthly payments on the original plan but can afford something.
If you're starting out in an entry-level position but expect your income to increase steadily, this may be your best option. Under a graduated plan, your payments start out low and increase every two to three years.

5. Ask about an income-based repayment plan.
If your income varies substantially from year to year--perhaps you work for yourself or hold a few part-time jobs-an "income-contingent" or "income-sensitive repayment" plan may be right for you. Your annual payments adjust each year based on your previous year's income. As your income rises or falls, so do your loan payments.

6. Consolidate your loans.
Consolidating lowers the monthly payments by extending your repayment period, lowering the interest rate or both; the downside is that you pay more interest over the life of your loan. The Department of Education estimates that about 100,000 former students consolidate their student loans each year.

7. Explore deferment or forbearance.
Deferments temporarily postpone loan payments and are generally available for people who are unemployed, returning to school, returning to work after the birth or adoption of a child, or on parental leave. Sometimes the federal government pays the interest that accrues during a deferment period. A forbearance allows you to temporarily postpone or reduce loan payments, but the interest on loans continues to accrue. Forbearances are easier to obtain than deferments.

8. Don't pay more interest than you have to.
You can deduct student loan interest of up to $2,000 for 2000 and $2,500 in 2001, if your income is $40,000 or less. If you've taken loans to pay college costs for yourself, a spouse, or a dependent, you may be able to deduct at least some of the interest on those loans.

9. Okay, it's obvious but. . . avoid default.
If you default, the amount you owe will skyrocket because the government can add a collection fee of up to 25% of the principal. Furthermore, your credit is damaged, your wages may be garnished, you may be sued, and you can never qualify for a deferment while you're in default. And, if you do default, there's no need to become a fugitive: you can "rehabilitate" your loans by making twelve consecutive monthly payments. Talk to your loan holders.

10. Do good and cancel your federal student loans.
You might qualify for a total or partial loan cancellation if you work in a helping profession like teaching or serving needy populations, performing community service such as with the Peace Corps, or working in law enforcement or healthcare.

IAAL


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