CreditBoards > unable to BK on private student loans??

Full Version: unable to BK on private student loans??

CreditBoards > Financing > Student Loans

ignoranceIsn'tBliss

Sep 14 2006, 10:21 AM

I went hunting around the net to see if I could find information on the ability to BK on private student loans. The only information I could find was from this page.

I know you can't BK on fed student loans, but this I was unsure of.

http://www.moranlaw.net/studentloans.htm Changes in 2005 made even private student loans non dischargeable.

Anyone know how to verify this?

cotterpin

Sep 14 2006, 10:31 AM

http://www.law.cornell.edu/uscode/html/usc...23----000-.html

QUOTE

§ 523. Exceptions to discharge

(a) A discharge under section 727, 1141, 1228 (a), 1228 (B ), or 1328 (B ) of this title does not discharge an individual debtor from any debt—

(8) for an educational benefit overpayment or loan made, insured or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution, or for an obligation to repay funds received as an educational benefit, scholarship or stipend, unless excepting such debt from discharge under this paragraph will impose an undue hardship on the debtor and the debtor’s dependents;

LynnInMN

Sep 14 2006, 10:42 AM

Up until the changes recently made, non profit private loans have always been non dischargeable. TERI is non profit and I would assume that the division of Sallie Mae that issues private loans is deemed non profit.

TxQuiltGirl

Sep 14 2006, 12:41 PM

Yeah, I think that private SLs from someplace like Wells Fargo could be discharged, though, since they are a for-profit business.

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