Missing payments on student loans can severely impact your credit. However, the more time that passes, the less of an effect that these missed payments should have on your credit overall.
Additionally, while student loan debt won’t ever go away, there could come a point where your creditors will stop trying to collect on your past-due loans. This limited period that lenders have to take you to court to recoup the debt is called a statute of limitations.
When does private student loan debt fall off your credit report?
While there’s no statute of limitations for federal student loans, a private student loan that has passed the statute of limitations is considered a time-barred debt — meaning the lender can’t sue you to collect the money.
The statute of limitations for private student loans generally ranges from three to 10 years, depending on your state.
Just keep in mind that if you do anything to acknowledge the old debt — even making one payment or acknowledging the debt as yours — the clock can restart, and the statute of limitations will begin again.
Learn More:How to Know if Your Student Loan Interest Rates Too High
Do private student loans go away after seven years?
Private student loans don’t go away unless you pay them off, but in most cases, they’ll fall off your credit report after seven years.
But keep in mind that lenders can still contact you to collect an old debt, even if it’s decades old and they can no longer take you to court over it.
Check Out:What Is a Student Loan Grace Period?
Are private student loans forgiven after 20 years?
Unfortunately, only federal student loans are eligible for student loan forgiveness programs — private student loans don’t qualify.
Tip:Whileprivate student loan forgivenessdoesn’t exist, there are other options that could help you more easily repay your private student loans.
For example, you might be able tolower your student loan interest ratethrough refinancing, which could save you money on interest charges and even help you pay off your loan faster.
Learn More:When Student Loan Refi Is a Good Idea and When to Reconsider
State-by-state list of statute of limitations on debt collection
Every state has its own statute of limitations for private student loans and other debts. Here are the statutes of limitations for each of them:
What happens if you default on student loans?
Student loans are considered delinquent immediately after a payment is missed. After missing enough payments in a row, you could end up instudent loan default.
Most federal student loans go into default after 270 days. For private student loans, the default terms can vary depending on the loan — many private lenders will consider a loan to be in default after 120 days.
Defaulting on your student loans causing a range of issues, including:
- Repayment acceleration:If your loans are in default, the entire unpaid balance could become due rather than your usual monthly payments.
- Damage to your credit score:Your payment history is one of the biggest factors that make up your credit score. If youmiss a student loan paymentor miss enough payments to end up in default, your credit score could be severely damaged.
- Limited access to credit in the future:Defaulting on a student loan could make it difficult to get approved for other types of credit, such as auto loans or mortgages. Additionally, being in default on a federal student loan will make you ineligible for federal financial aid.
- Could be sent to collections:Your lender could send your loan to collections, after which debt collectors will start contacting you in an attempt to collect. You might also be charged collection fees, adding to your overall loan cost.
- Could be taken to court:If you default on a private student loan, your lender could take you to court, charge you the unpaid balance, and require you to pay any associated court costs.
- Consequences for your cosigner:A cosigner shares responsibility for the loan — so if you miss payments or end up in default, your cosigner’s credit could be damaged, and they’ll likely be on the hook for repayment.
Can wages be garnished for private student loans?
Yes, your wages can be garnished if you default on private or federal student loans.
- Private student loans:To garnish your wages, private lenders have to sue you and obtain a court judgment. If the wage garnishment is approved, you could have up to 25% of your pay withheld. Lenders might also get a court judgment to seize your assets or place liens on your property.
- Federal student loans:The government can withhold up to 15% of your pay to send to your loan holder.
In general, wage garnishment lasts until your student loan is paid off, settled, discharged, or otherwise removed from default status. In the case of private student loans, you might also be able to ask the court to stop the wage garnishment if you’re eligible for an exemption.
Can you discharge student loans through bankruptcy?
Getting your student loans discharged through bankruptcy is difficult but not impossible. To potentially have your loans discharged, you must:
- File for Chapter 7 or Chapter 13 bankruptcy
- File a separate action called an “adversary proceeding”
The court will then decide whether repaying your student loans would impose an undue hardship on you and your dependents. If the court rules in your favor, then some or all of your student loans could be discharged or modified with different terms — such as a lower interest rate.
Tip:
If you’re thinking about filing for bankruptcy, it’s a good idea to discuss your situation with a bankruptcy attorney. This way, you can be sure you make the right decision for your needs.
Learn More:How to Pay off Student Loans in 10 Years or Less
Should you refinance your student loans to save money?
If you’re struggling to repay your student loans, you might consider refinancing them. Throughstudent loan refinancing, you’ll take out a new loan to pay off your old loans — leaving you with just one loan and payment to manage.
Depending on your credit, you might qualify for a lower interest rate through refinancing, which could save you money on interest and even help you repay the loan faster.
Or you could opt for a longer repayment term tolower your monthly student loan paymentand lessen the strain on your budget — though keep in mind that this means you’ll pay more in interest over time.
Keep in mind:While you can refinance both federal and private student loans, refinancing federal student loans will cost you federal benefits and protections — such as access to income-driven repayment plans and student loan forgiveness programs.
If you decide to refinance your student loans, be sure to consider as many lenders as possible to find the right loan for your needs.
4.44.4
Credible rating
Fixed (APR)
5.48% -
Loan Amounts
$10,000 up to total refinance amount
Min. Credit Score
680
Check Rates
on Credible’s website
View Details
Overview
Borrowers who graduated with at least a bachelor’s degree may refinance their student loans with ELFI. Every applicant is assigned a student loan advisor to help guide them through the process.
Students who wish to take over their parents’ PLUS loan may do so by refinancing with ELFI — something not offered by every lender — but spouses can’t consolidate their loans into a single refinancing loan.
Unfortunately, ELFI doesn’t allow borrowers to release cosigners, nor does it offer any rate discounts. However, borrowers who experience financial hardship may be eligible for up to 12 months of forbearance.
Interest rates
Fixed and variable
Minimum credit score
680
Minimum income
$35,000
Loan terms
5, 7, 10, 15, or 20 years for student loan refinancing; 5, 7, or 10 years for parent loan refinancing
Loan amounts
Minimum of $10,000 with no set maximum.
Cosigner release
None
Eligibility
Must be a U.S. citizen or permanent resident with a bachelor’s degree or higher. Must have at least $10,000 in student loans to refinance and a minimum credit history of 36 months.
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4.64.6
Credible rating
Fixed (APR)
5.49% -
Loan Amounts
$5,000 - $250,000
Min. Credit Score
680
Check Rates
on Credible’s website
View Details
Overview
Founded in 2009, LendKey partners with 300+ community banks and credit unions to connect borrowers with the loans they need. You can compare multiple lenders at once without affecting your credit score.
However, the exact terms and qualification requirements available through LendKey vary depending on your chosen community lender. While you can easily compare options, you’ll need to read the fine print of each offer to make sure the loan offers everything you need.
Interest rates
Fixed or variable
Minimum credit score
680
Minimum income
Does not disclose
Loan terms
5, 7, 10, or 15 years
Loan amounts
$5,000 to $250,000
Cosigner release
Varies based on lender's terms
Eligibility
Must be a U.S. citizen or permanent resident and have already graduated with at least an associate degree from one of LendKey lenders’ eligible institutions.
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3.93.9
Credible rating
Fixed (APR)
5.85% -
Loan Amounts
$5,000 - $250,000
Min. Credit Score
670
Check Rates
on Credible’s website
View Details
Overview
INvestEd is an Indiana-based nonprofit lender that provides refinanced student loans nationwide. As a nonprofit, INvestEd offers competitive rates as well as an autopay discount. Cosigner release is also available after 12 on-time payments, which is less than many competitors.
However, the maximum refinance limit of $250,000 is below what other lenders may allow. Borrowers must also comply with strict credit and income requirements to qualify, or must have an eligible cosigner. While credit requirements are clearly defined, there’s no way to prequalify with a soft credit check.
Interest rates
Fixed or variable
Minimum credit score
670
Minimum income
Does not disclose
Loan terms
5, 10, 15, or 20 years
Loan amounts
$5,000 to $250,000
Cosigner release
12 months
Eligibility
U.S. citizens or permanent residents are eligible. Borrowers must meet minimum requirements including a FICO score of 670 or higher, annual income of $36,000, a debt-to-income ratio below 40% to 50%, a year of continuous employment, and no defaults or serious collection activities in recent years.
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3.83.8
Credible rating
Fixed (APR)
6.00% -
Loan Amounts
$7,500 - $200,000
Min. Credit Score
700
Check Rates
on Credible’s website
View Details
Overview
EdvestinU is a loan program offered by Granite Edvance Corporation and offers affordable rates for refinance loans. Borrowers can refinance federal and private loans, and fixed and variable rate loans are available.
EdvestinU refinance loans are available to residents of about 20 states, and the lender has higher loan minimums and lower maximums than some competitors. Both of these factors limit who can (or might want to) refinance with this lender, but eligible borrowers do have various repayment term options.
Interest rates
Fixed or variable
Minimum credit score
700
Minimum income
Does not disclose
Loan terms
5, 10, 15, or 20 years
Loan amounts
$7,500 to $200,000
Cosigner release
24 months
Eligibility
U.S. citizens or permanent residents who are at least 18 years old and reside in Alaska, Arkansas, Colorado, Connecticut, Florida, Maine, Massachusetts, Nebraska, New Hampshire, New Jersey, New York, North Carolina, Puerto Rico, Rhode Island, Texas, Utah, Virginia, Washington, West Virginia, and Wisconsin.
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44
Credible rating
Fixed (APR)
6.20% -
Loan Amounts
$10,000 up to the total amount
Min. Credit Score
670
Check Rates
on Credible’s website
View Details
Overview
Not-for-profit lender Massachusetts Educational Financing Authority (MEFA) offers refinancing loans to student borrowers — and unlike many other lenders, you don’t need to have earned your degree to qualify. Only fixed-rate loans are available, but the rates are competitive and may be lower than what other lenders can offer. MEFA also doesn’t charge any fees or penalties.
Refinance loans start at $10,000, and you must have made six consecutive on-time payments on the original loans over the most recent six months. If you can’t qualify based on your own credit history, you can add a cosigner.
Interest rates
Fixed
Minimum credit score
670
Minimum income
Does not disclose
Loan terms
7, 10, or 15 years
Loan amounts
$10,000 up to your total debt
Cosigner release
None
Eligibility
Must be a U.S. citizen or permanent resident who is the primary borrower on education debt used to attend an eligible college or university. Must have made six on-time loan payments over the most recent six months. Must have no history of default or delinquency on education debt for the past 12 months and no history of bankruptcy or foreclosure in the past five years.
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3.73.7
Credible rating
Fixed (APR)
6.34% -
Loan Amounts
$7,500 - $250,000
Min. Credit Score
680
Check Rates
on Credible’s website
View Details
Overview
Founded in 1981, Rhode Island Student Loan Authority (RISLA) is a nonprofit lender that offers refinance loans to borrowers in all 50 states. Though most private lenders require borrowers to have graduated to qualify for refinancing, RISLA also serves borrowers who didn’t complete their degree.
RISLA offers income-based repayment to borrowers in financial distress. Additionally, borrowers may also access up to 24 months of forbearance in the event of financial hardship. Borrowers who return to graduate school may defer repayment on their refinancing loans for up to 36 months.
Interest rates
Fixed
Minimum credit score
680
Minimum income
$40,000
Loan terms
5, 10, or 15 years
Loan amounts
$7,500 minimum up to of $250,000, depending on degree
Cosigner release
None
Eligibility
Borrower or cosigner must meet credit requirements. Student must be a U.S. citizen or permanent resident and have used original student loans to attend an eligible degree-granting institution.
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4.74.7
Credible rating
Fixed (APR)
6.49% -
Loan Amounts
$10,000 - $750,000
Min. Credit Score
Does not disclose
Check Rates
on Credible’s website
View Details
Overview
Citizens offers student loan refinancing to qualifying borrowers who refinance at least $10,000 in student loan debt.
Undergraduate borrowers can refinance up to $300,000 in student loans, while those who borrowed for graduate or professional degrees have higher limits of $500,000 or $750,000. Citizens offers fixed and variable rates and repayment terms between five and 20 years.
If you’re a medical resident, you can refinance your student loans and only pay $100 per month for up to four years while completing your residency or fellowship.
Interest rates
Fixed or variable
Minimum credit score
700
Minimum income
Does not disclose
Loan terms
5, 7, 10, 15, or 20 years
Loan amounts
$10,000 minimum, with a maximum of $300,000 for bachelor’s degree or below; $500,000 for graduate degrees; and $750,000 for professional degrees
Cosigner release
36 months
Eligibility
Must refinance at least $10,000 in student loans and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number. Must have earned at least a bachelor's degree to qualify.
Read full review
All APRs reflect autopay and loyalty discounts where available | LightStream disclosure | SoFi Disclosures | Read more about Rates and Terms
Meet the expert:
Dori Zinn
Dori Zinn is a personal finance journalist with work featured in Huffington Post, Quartz, Wirecutter, Bankrate, and others. She loves helping people learn to be better with money.
