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    student loan question

    Hoping I can depend on the experts here to help me out with this!

    My husband and I are set to file this Friday. I graduated in May and my student loans are still in their grace period, but I consolidated them in June. I called the lender to get my account number and balance (I don't have any of this since I haven't been repaying yet) and found out that they would not be able to do the consolidation unless I gave up my grace period. My loans have been consolidated, but the company has not actually issued the checks to my other lenders to pay off the original loans. The person I spoke with told me to give up the grace period so that the loan would be processed and the checks would be sent out. That way, the BK notice will go to the consolidation company and not the original lenders.

    So I did, and I will be able to defer when the bill comes because of the BK, so that isn't my problem. However, I'm scared that filing this soon will mess up the process somehow. We can't wait until the loan is completely processed because our attorney wants us to file before October (apparently something is going to change that could affect us), but I don't want to do it too soon. I'm hoping that by the time my creditors are notified of the BK, the loan will be processed and there won't be any problem.

    I know this is an odd situation, but I'm wondering if anyone else has been through something similar. I'm terrified of messing up the consolidation loan since it will save me TONS of money! Any thoughts?
    Filed Chapter 7: 9/29/06
    341 Meeting: 11/01/06
    Last Day for Objections: 1/01/07
    Discharged and closed: 1/03/07

    #2
    Hi BT,

    I wasn't in the same situation as you, but I did file with consolidated student loans. A couple of thoughts:

    As long as the process has already been completed and checks mailed out by the time you file, it shouldn't be a problem. At that point, you're on the hook to the new loan company, and they can't go back and change that just because you filed for BK.

    The other thing you probably know is that student loans are excluded from bankruptcy discharges anyway, so your filing for BK won't have any effect on the student loans, with the exception that you noted, which is that they will go into deferrment when you file.

    Hope that helps!
    Ron

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