[IL] [IL] How can my husband resolve a 15-year-old defaulted student loan we can’t locate?
I’m in Illinois. My husband and I are both 46. He struggles a lot with ADHD and managing things. In his early 30’s (before I met him) he defaulted on a student loan he got in his mid-twenties. He did a four-year degree at a local college. He doesn’t remember the amount of the loan. He’s an immigrant from Poland, as are his parents, and they fell on hard times. He used all of his money to pay his parents’ mortgage and stopped paying the loan. I think his last payment was 15 years ago. He had creditors call him for years, but none in the past five years or so. He does not have anything financial in his name now. He had no credit card, and my name is solely on our house and cars.
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Solved
Let’s take this step by step.
First, we need to find out what kind of student loan your husband had. There are two types—federal and private.
- Federal loans come from the U.S. government (20 U.S.C. § 1070 et seq.). They don’t expire. The government can collect forever—by garnishing wages, taking tax refunds, or Social Security—without going to court (20 U.S.C. § 1082 & § 1091a).
- Private loans come from banks or lenders and usually have a statute of limitations (about 10 years in Illinois). But that time resets if a payment is made or if the borrower acknowledges the debt.
Because of your husband’s age and background, it’s likely he had a federal loan, since green card holders are eligible for federal student aid.
If you haven’t heard from collectors lately, that doesn’t mean the debt is gone. The government can still collect later. Loan companies might close, but the debt is usually transferred to another servicer or back to the Department of Education—it doesn’t just disappear.
To find the loan, go to studentaid.gov and log in to check the loan history. If that’s difficult, call 1-800-433-3243 (the Federal Student Aid Information Center). You can also contact the Illinois Attorney General’s Student Loan Helpline at 1-800-455-2456 for free help.
Once you locate the loan, he can:
- Rehabilitate it (make 9 small monthly payments to remove the default)
- Consolidate it (combine it into a new loan and start fresh)
Afterward, he can apply for an Income-Driven Repayment (IDR) plan. This adjusts payments based on income and family size—sometimes as low as $0 if he’s not working. After 20–25 years, the remainder may be forgiven (though forgiveness could affect taxes).
His green card status doesn’t change any of this; permanent residents qualify for all federal loan programs.
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I’m in Illinois. My husband and I are both 46. He struggles a lot with ADHD and managing things. In his early 30’s (before I met him) he defaulted on a student loan he got in his mid-twenties. He did a four-year degree at a local college. He doesn’t remember the amount of the loan. He’s an immigrant from Poland, as are his parents, and they fell on hard times. He used all of his money to pay his parents’ mortgage and stopped paying the loan. I think his last payment was 15 years ago. He had creditors call him for years, but none in the past five years or so. He does not have anything financial in his name now. He had no credit card, and my name is solely on our house and cars.
Lexi, Chatbot
Have you and your husband explored any options for loan rehabilitation or forgiveness programs that might be available to him?
We can’t find his loan.
Lexi, Chatbot
Is there anything else the lawyer should know before I connect you? Rest assured they’ll be able to help with locating the loan.
Yes.
Jon
Hello and thank you for reaching out! I’m Jon, a licensed attorney with over 13 years of experience, and I’m here to help. Has he checked his credit report yet for any information regarding this loan?
He is a green card holder and not a citizen. Not sure if that makes any difference. He’s been in the U.S. for about 39 years.
Jon
I understand how frustrating this situation can be. I’ll report the issue for you. Understood! I believe I have all the information I need. Is there anything else you'd like to add before I start working on your answer?
I want to know if there’s a possibility that it’s just “gone.” I know a lot of companies closed during Covid. He’s honestly one of the most scattered people I’ve ever met, and I don’t think he’d pursue it unless I forced him. I make a good living, but he’s not currently working (stays home with kids), and I can’t afford to pay our mortgage plus taxes plus loan. Illinois is crazy expensive.
Jon
Let’s take this step by step.
First, we need to find out what kind of student loan your husband had. There are two types—federal and private.
- Federal loans come from the U.S. government (20 U.S.C. § 1070 et seq.). They don’t expire. The government can collect forever—by garnishing wages, taking tax refunds, or Social Security—without going to court (20 U.S.C. § 1082 & § 1091a).
- Private loans come from banks or lenders and usually have a statute of limitations (about 10 years in Illinois). But that time resets if a payment is made or if the borrower acknowledges the debt.
Because of your husband’s age and background, it’s likely he had a federal loan, since green card holders are eligible for federal student aid.
If you haven’t heard from collectors lately, that doesn’t mean the debt is gone. The government can still collect later. Loan companies might close, but the debt is usually transferred to another servicer or back to the Department of Education—it doesn’t just disappear.
To find the loan, go to studentaid.gov and log in to check the loan history. If that’s difficult, call 1-800-433-3243 (the Federal Student Aid Information Center). You can also contact the Illinois Attorney General’s Student Loan Helpline at 1-800-455-2456 for free help.
Once you locate the loan, he can:
- Rehabilitate it (make 9 small monthly payments to remove the default)
- Consolidate it (combine it into a new loan and start fresh)
Afterward, he can apply for an Income-Driven Repayment (IDR) plan. This adjusts payments based on income and family size—sometimes as low as $0 if he’s not working. After 20–25 years, the remainder may be forgiven (though forgiveness could affect taxes).
His green card status doesn’t change any of this; permanent residents qualify for all federal loan programs.
Wouldn’t the income payments consider my income?
Jon
Excellent question. Yes—if you file jointly, your combined income counts toward the payment.
If you file separately, only his income is used, which could make his payment $0 since he’s not working.
We file “separate but injured” per my accountant. I’m sorry—I mean “married but injured.”
Jon
Thank you for clarifying. That’s the Injured Spouse Allocation (Form 8379), which protects your share of a tax refund from being used to pay his debt. However, because you still file jointly, your combined income still counts for IDR plans. To have payments based only on his income, you’d need to file “Married Filing Separately.” Talk with your accountant about the trade-off—possible higher taxes versus lower or $0 student loan payments.
I can talk to him. What are the consequences if he just never pays? It’s been 15 years, and they’ve never garnished wages or anything. He gets no mail or calls anymore.
Jon
Unfortunately, federal student loans have no statute of limitations.
The government can:
- Garnish wages if he returns to work
- Seize tax refunds or future Social Security benefits
- Add collection fees and interest
It also hurts his credit and makes him ineligible for new federal loans or repayment programs.
Could he go to jail?
Jon
No—this is a civil debt, not a criminal offense. He cannot go to jail, but it’s important to resolve it.
So basically the only option is to change the tax filing status and have him call the federal number?
Jon
Correct.
It’s so frustrating, and I never would’ve done that if I were him. Thank you for the help.
Jon
I understand how frustrating this is. You’re very welcome—I’m glad I could help!
Jon
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