Student Loans/Forebearance questions

Do student loans HAVE to be put in deferment/forebearance during a Chapter 13? I have already used up my limit of deferment/forebearance, so how does that work?

I really need to keep paying my loans, as my payment is about $170/month and that doesn't do much more than cover interest. If interest is added monthly without any payment, I'll be in deeper debt in 60 months than I am now!

However, if I'm forced to pay all disposable income toward my 13 and no allowance is made for my student loan, I'll be *&%^#*$!

Also, I'm 4 months behind on my SL now. If it is put in deferment, at the end of my 13, will it come out showing already 4 months past due, or will it be re-aged to current status as long as I pay monthly?

Whether you can continue to pay on your student loans after filing Ch 13 depends on the customs in your local bk court. You need to ask your lawyer what's possible. Be sure to share that you've used up all your deferment/forebearance options already.

If you get a good Ch 13 plan and can put some cash aside every month to pay on your student loans, you can continue to make some payments on your own. However, watch your lender like a hawk, especially if the lender is private. Some lenders have been known to put the payments made during Ch 13 into a holding account rather than paying down the interest and principal so what you owe keeps on building.

It's a very scummy game on the student loan front these days. Don't get caught up in the swamp - keep your eyes open if you are allowed to make payments during Ch 13.

There was a recent court decision on this in Philadelphia I think. Check it out to see if it applies to your situation.

My student loans are in my plan, and the one with the US Dept of Education is actually getting about 60% of my monthly payment, which was a heck of a lot more than what I was able to pay on my own. We're in 26% payback, and because they are consolidated and the amount is so high, they are getting much more than the credit card companies are getting. Might be worth it to investigate it further depending on your situation.