I posted this in the BK forum earlier...

I think I read somewhere that student loans all go into forbearance while in BK. DH and I both have SL's and I have been current with repaying but they are all deferred right now. DH's have all been deferred and have not been in repayment because he's still a student. What will be different when we're in BK? When in forbearance do the loans collect interest? Right now since both of us are in deferment only our unsubsidized loans are collecting interest.

Also, can DH take out another student loan while we're in BK? How would that work?

TIA!

If the loans are already in a deferment they would probably not apply the administrative forbearance that is usually applied during a BK7. They very likely would suppress all normal communication, such as statements, account access on their website, ability to discuss account with their customer service, etc.

Since it's 7, and not 13, the loans would remain with their current lender and not be sold to the guarantor.

A loan may be disbursed with a BK pending, depending on the state and the guarantor. Some guarantors may not guarantee a loan until the bankruptcy is discharged (and no guarantee means no loan), some may require a new master promissory note even if one has already been signed.

Although you can certainly contact the school, lender, or guarantor and ask questions, they may advise you that you need to have your attorney contact them or that you need to ask your attorney for advice, etc. (They do not want to do anything that could possibly be construed as trying to collect a debt with bankruptcy proceedings pending).

Thanks for the replies!

So hopefully since my loans are already being deferred, only the unsubsidized loan will collect interest and not the subsidized ones?

Would it be useful to call someplace (not sure where?) about let them know that I will be filing BK and ask them what will happen with our loans during BK and whether DH would be able to receive a loan during BK? He filed a FAFSA in the fall but we were going to try to make do without it...we may need it later on this semester though. We're planning to file in early Feb so the earliest discharge date would not be until May so it would be tough if he can't have one disbursed until after discharge. Also, my loans are with one lender and one guarantor, but DH has several. Maybe the one he's been using most recently (and who a new loan would be through) would be appropriate to contact? I'm assuming there's no harm in contacting the guarantor since we will be repaying the SLs and we're both current with our loans.

DH can call schools financial aid office and ask if BK will effect ability to get loan.

You should both notify the holders of your loans of the BK.

Do you mean notify them aside from having them on the creditor matrix, where they will all get notified by the court?