Protecting the Rights of Consumers For Over 25 Years

Q. What is the statute of limitations on student loans?

A. Federal loans do not have a statute of limitations, if they are held by one of the entities described in 20 U.S.C. §1091a. These are (a) an educational institution, (b) a guaranty agency that has an agreement with the Department of Education, (c) a financial institution that has an agreement with the Department of Education, or (d) the Government itself.

Private loans are governed by the applicable state contract statute of limitations. This can be either 10 or 5 years in Illinois, depending on the documentation. If you were a resident of another state when the loan went into default, that state's statute may apply under the Illinois "borrowing statute."

If you are sued in Illinois on a private student loan where more than five years has elapsed since the last payment, or if the loan went into default when you were residing in another state, please contact us.