top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Student loans cancelled - debt owed to colleges

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Student loans cancelled - debt owed to colleges

    Here is the situation:

    College "A" - 2003 - 1 semester I did all the paperwork to receive a subsized and an unsubsized loan, based on full-time status. My mother was suffering from terminal cancer and at the time it was impossible to attend school full-time. So, I withdrew from 2 courses. The college cancelled the unsubsidized loan and returned it to the lender. The college tried to collect on the debt and filed a judgment against me. Garnishment of my bank account, etc.
    Total = $2000

    College "B" - 2006 - 1 semester I was registered full-time. But due to family issues, I was going back and forth from Europe. I wasn't able to attend, nor was I able to withdraw in time. Therefore, I received incomplete grades. This affected my student loan eligibility and the college cancelled my student loans, both subsidized and unsubsidized. The college is still trying to collect on this debt, but hasn't sent it to collections yet. Total = $6000

    In June 2007, I filed Ch 7 BK pro se, and it was discharged in Oct. 2007.

    College A accepted the discharge of the debt and I owe them nothing. They stopped their attempts to collect the debt with their attorney. I was able to apply for new student loans and currently enrolled. Case closed!

    College B is saying the debt is not dischargeable. I've been fighting this with them for a year now. Today, they are saying that they researched this issue with AES (American Education Services), who was the guarantor, and that whomever they spoke to at AES says this debt is not dischargeable.
    However, I called AES myself and told them about the situation. Since the loans were cancelled and the money returned to the lender/guarantor, I didn't owe anything. They didn't understand why this college would even need to contact them for answers, since this debt is now between me and the college and no longer involves AES.

    What I don't understand is why College A would accept the discharge, but College B will not??? I didn't receive any educational benefits with either college, since I wasn't able to attend the classes.
    Since I did my bk pro se, I doubt any lawyer will help me fight this!

    Is there anyone out there who has any similar experiences or legal advice?
    How much would it cost to fight it?
    I am desperate! I want to take care of this before they send it to collections and it goes on my credit report, or they file a judgment against me!!

    Thanks!!!
    None

    #2
    I hadn't received any replies yet on my post. But I was think about something.

    If College B believes this debt is not dischargeable, shouldn't they have appeared at the Creditors Meeting and objected to the discharge of the debt?
    So, they didn't attend but now they are objecting to me that it is not dischargeable.
    If I want to dispute this debt, how to I do it? Would I need to file an adversary proceeding against them?
    Or do I wait for them to file a judgment against me, then file an appeal?

    I am calling all over Maryland trying to find a lawyer to help me but they only take cases that are pre-bk.
    I need help and I don't know what to do!
    None

    Comment

    bottom Ad Widget

    Collapse
    Working...
    X