Student loans and bk - another question

[amynrich]

I have a couple questions about my student loan. The first one I SHOULD know the answer too, but I don't.

 

1. How do I know is if it's a guaranteed student loan? What determines that? Is a federal loan ALWAYS guaranteed? The loan has been sold (I guess *sold*) a couple times and it's no longer handled by the same company that I got it from. I don't remember it ever being refered to as *guaranteed*, but now the company that is collecting it is Texas Guaranteed Student Loan... so I guess it IS guaranteed (based on the name of the company), but how do I know for SURE since it's changed hands so many times? I'll admit I was really stupid and never kept any paper work regarding it (or anything for that matter), so I don't even know who the original company was.

 

2. I've been researching bk stuff for a bit (we're going to see a lawyer, but I'd like to know as much as possible before our consultation) and found this:

 

"Student loans are dischargable if repayment would cause undue hardship"

 

and

 

"Student loan debts may be discharged if payments became due mor than 7 years prior to filing bankruptcy"

 

Isn't the 7 year rule no longer valid? And what, or who, determines "undue hardship"? I haven't been able to find anything concrete about that.

[LynnInMN]

Texas Student Loan Program is a guarenteed student loan lender. Yes it it a federal loan, known as a FFLEP loan VS a direct loan.

 

7 year rule no longer applies....that went away in 1998.

 

It is very difficult to have a loan dismissed via bankruptcy. They will do a seperate hearing and it basically comes down to your ability to repay the loan in the future...they just dont look at the present. So if you are working or capable of working, it is not likely to happen.

[amynrich]

Oh well... that's what I expected... thankfully I don't have THAT much left to pay off... it would have been nice to have gone, but not vital.