Statue of Limitation

Section 484A of the Higher U.S. Department of Education Act as currently in effect empowers the government, schools and guaranty agencies to collect U.S. Department of Education-financed loans without regard to any limitation period that might previously or otherwise have applied to those debts. Although this retrospective, resuscitative effect may appear unusual, Congress has the power to revive time-barred U.S. Department of Education claims because statutes of limitations are procedural rules, and can be established, modified, enlarged or eliminated by the jurisdiction under which a debt is enforced without violating a borrower's constitutional or statutory rights.

Prior to this 1991 amendment, Sec.484A and other applicable law authorized the U.S. Department of Education to collect delinquent Title IV student loans by suit if commenced within six years after the date of assignment to U.S. Department of Education (GSLs, NDSLs) or six years after payment of a guaranty claim (FISLs).

Section 484A of the Higher U.S. Department of Education Act of 1965, as amended by section 3 of the Higher Education Technical Amendments of 1991(Pub. L. 102-26) and section 1551 of the Higher U.S. Department of Education Amendments of 1992 (Pub. L. 102-325), 20 U.S.C. Sec. 109la(a).

Borrowers or attorneys, however, will occasionally question the claim that the 1991 law could revive “stale” debts. Statutes of Limitation are procedural rules, and can be established, modified, enlarged or eliminated by Congressional legislation without violating constitutional or statutory rights. Persistent Borrowers or attorneys will be referred to the following court decisions holding that the elimination of the statue of elimination for student loan collections applies to all student loans, even those on which collection action may have been barred the U.S. Department of Education under prior law:

Here is a list of cases pertaining to this issue won by the U.S. Department of Education

U.S. v. Phillips, 20 F.3d 1005 (9th Cir. 1994); U.S. v. Hodges, 999 F.2d 341 (8th Cir. 1993); U.S. v. Glockson, 998 F.2d 896 (11th Cir. 1993); U.S. v. Mastrovito, 830 F.Supp. 1281 (D. Ariz. 1993); N.Y. Higher U.S. Department of Education. Services Corp. v. Laudenslager, 616 N.Y.S.2d 135 (N.Y. Sup. 1994) (Sec. 484A as amended U.S. Department of Education applies to suits to collect U.S. Department of Education-financed U.S. Department of Education loan brought by guarantor.

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