Perkins Bankruptcy Statute of Limitations

Rebecca Harding has provided the following information about the Statute of Limitations for Bankruptcy as they concern Perkins loans.

In short, there is no statute of limitations on Perkins Loans. The following text is reproduced from US Code, Title 20, Section 1091a from Cornell's site (see http://www4.law.cornell.edu/uscode/20/1091a.text.html).

US Code as of: 01/05/99

Sec. 1091a. Statute of limitations, and State court judgments

(a) In general
- (1) It is the purpose of this subsection to ensure that obligations to repay loans and grant overpayments are enforced without regard to any Federal or State statutory, regulatory, or administrative limitation on the period within which debts may be enforced.
- (2) Notwithstanding any other provision of statute, regulation, or administrative limitation, no limitation shall terminate the period within which suit may be filed, a judgment may be enforced, or an offset, garnishment, or other action initiated or taken by -
  - (A) an institution that receives funds under this subchapter
    and part C of subchapter I of chapter 34 of title 42 that is
    seeking to collect a refund due from a student on a grant made,
    or work assistance awarded, under this subchapter and part C of
    subchapter I of chapter 34 of title 42;
  - (B) a guaranty agency that has an agreement with the Secretary
    under section 1078(c) of this title that is seeking the repayment
    of the amount due from a borrower on a loan made under part B of
    this subchapter after such guaranty agency reimburses the
    previous holder of the loan for its loss on account of the
    default of the borrower;
  - (C) an institution that has an agreement with the Secretary
    pursuant to section 1087c or 1087cc(a) of this title that is
    seeking the repayment of the amount due from a borrower on a loan
    made under part C or D of this subchapter after the default of
    the borrower on such loan; or
  - (D) the Secretary, the Attorney General, or the administrative
    head of another Federal agency, as the case may be, for payment
    of a refund due from a student on a grant made under this
    subchapter and part C of subchapter I of chapter 34 of title 42,
    or for the repayment of the amount due from a borrower on a loan
    made under this subchapter and part C of subchapter I of chapter
    34 of title 42 that has been assigned to the Secretary under this
    subchapter and part C of subchapter I of chapter 34 of title 42.

(b) Assessment of costs and other charges
Notwithstanding any provision of State law to the contrary -
- (1) a borrower who has defaulted on a loan made under this
  subchapter and part C of subchapter I of chapter 34 of title 42
  shall be required to pay, in addition to other charges specified
  in this subchapter and part C of subchapter I of chapter 34 of
  title 42 reasonable collection costs; and
  (2) in collecting any obligation arising from a loan made under
  part B of this subchapter, a guaranty agency or the Secretary
  shall not be subject to a defense raised by any borrower based on
  a claim of infancy.

(c) State court judgments
A judgment of a State court for the recovery of money provided as grant, loan, or work assistance under this subchapter and part C of subchapter I of chapter 34 of title 42 that has been assigned or transferred to the Secretary under this subchapter and part C of subchapter I of chapter 34 of title 42 may be registered in any district court of the United States by filing a certified copy of the judgment and a copy of the assignment or transfer. A judgment so registered shall have the same force and effect, and may be enforced in the same manner, as a judgment of the district court of the district in which the judgment is registered.