Full Version: SallieMae Private Student Loan and BK
Has anyone had Private Student Loans with SallieMae discharged in BK. I know that Students Loans that are guaranteed by Federal/government will not be discharged but the 2 I have with them are Private Signature Student Loans. After 10-15-2005 it would not matter private or not, they would not be forgiven but I filed before New BK law went into effect. I was just wondering if anyone out there has been successfully in having loans such as these discharged in their BK. Thanks Jim
QUOTE(jls16845 @ Jul 20 2006, 08:06 PM) 
Has anyone had Private Student Loans with SallieMae discharged in BK. I know that Students Loans that are guaranteed by Federal/government will not be discharged but the 2 I have with them are Private Signature Student Loans. After 10-15-2005 it would not matter private or not, they would not be forgiven but I filed before New BK law went into effect. I was just wondering if anyone out there has been successfully in having loans such as these discharged in their BK. Thanks Jim
Not likely. Most private loans are funded by non-profit organizations. These loans are generally not dischargeable in BK.
QUOTE(jls16845 @ Jul 20 2006, 08:06 PM)
Has anyone had Private Student Loans with SallieMae discharged in BK. I know that Students Loans that are guaranteed by Federal/government will not be discharged but the 2 I have with them are Private Signature Student Loans. After 10-15-2005 it would not matter private or not, they would not be forgiven but I filed before New BK law went into effect. I was just wondering if anyone out there has been successfully in having loans such as these discharged in their BK. Thanks Jim
If the Sallie Mae loan is backed or guaranteed by a non profit organization, then it is NOT dischargeable in BK either. And knowing Sallie Mae, they would have every possible loophole covered.
QUOTE(LynnInMN @ Jul 20 2006, 09:54 PM)
QUOTE(jls16845 @ Jul 20 2006, 08:06 PM)
Has anyone had Private Student Loans with SallieMae discharged in BK. I know that Students Loans that are guaranteed by Federal/government will not be discharged but the 2 I have with them are Private Signature Student Loans. After 10-15-2005 it would not matter private or not, they would not be forgiven but I filed before New BK law went into effect. I was just wondering if anyone out there has been successfully in having loans such as these discharged in their BK. Thanks Jim
If the Sallie Mae loan is backed or guaranteed by a non profit organization, then it is NOT dischargeable in BK either. And knowing Sallie Mae, they would have every possible loophole covered.
Mine were not Discharge in BK either, but they are not showing negatively on my CR either.
However, when I went to the DOE student loans site a few months back, it said they were in default, but no adverse activity has been taken against me. Is this Good?
Should I contact the student loan lender (guranteer USAFUNDS) and start making payments? Or should I wait until my BK is discharged in <2 years??? New law as of 7/06 says that it will take 9-10 months of gradual on-time payments to 'erase' default, then my rehabed loan will have to be rebought and consolidated ???
My loans were already consolidated in 02, so will this affect me or change my consoildation terms? Should I try to repay while actively in BK (CHP 13, filed 3/03, currently in voluntary wage garnishment) or wait?-Mel
If you are currently in active BK and the student loans are listed, they cannot even discuss this debt with you until the BK is discharged. You would be in a lockbox status. Even if you were to just send in the payments, they would not fund the rehab until discharge.
QUOTE(LynnInMN @ Jul 24 2006, 02:19 PM)
If you are currently in active BK and the student loans are listed, they cannot even discuss this debt with you until the BK is discharged. You would be in a lockbox status. Even if you were to just send in the payments, they would not fund the rehab until discharge.
Okay, but why is it showing default? What is 'lockbox'? My loans were not in defaut pre- BK, but I have made no paymens on them due to BK - no extra $$. Will my '02 consolidation at 5% still be good post-BK?
I owe >$40,000.
Thanks!
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