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Dilemma-refund of student loan pmts made during the pause, but pd through BK

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    Dilemma-refund of student loan pmts made during the pause, but pd through BK

    Hello all!

    It has come to my attention that you are able to request a refund of any payments made toward Federal student loans during the Covid payment pause. (Yes, it is true, it's a thing and it is stated on the studentaid.gov website.)

    Question is though...all those payments were made through my Chapter 13 bankruptcy. Would I get in some sort of trouble for this? Or is it considered "paid by me" and therefore mine to request back? I want to do this, but I want to make sure I am not violating any sort of rule that would void my bankruptcy.

    They say that the refund goes back into the bank account the payments were made from. When I inquired, since my payments were apparently made via physical checks from the trustee, my student loan servicer said that a check from the Treasury Department would then be sent to the address they have on file for me.

    I'm in a situation where this money would come in handy (health insurance deductible/medical costs), and I've already unfortunately exhausted my other credit options.

    Any thoughts/precedent on this? I've contacted the attorney I used for the BK, but I guess since I have been discharged they are not required to or willing advise me.

    #2
    Can you request a partial refund of $50 and see what happens first? My concern is that it will go to the trustee somehow.

    To me, it's like a loan modification after the bankruptcy which is legal. But I'm not a lawyer.

    If it was me, I would just do a trial refund and see what happens. If it works, then take it all out.

    Comment


      #3
      Originally posted by ope2 View Post
      Hello all!

      It has come to my attention that you are able to request a refund of any payments made toward Federal student loans during the Covid payment pause. (Yes, it is true, it's a thing and it is stated on the studentaid.gov website.)

      Question is though...all those payments were made through my Chapter 13 bankruptcy. Would I get in some sort of trouble for this? Or is it considered "paid by me" and therefore mine to request back? I want to do this, but I want to make sure I am not violating any sort of rule that would void my bankruptcy.

      They say that the refund goes back into the bank account the payments were made from. When I inquired, since my payments were apparently made via physical checks from the trustee, my student loan servicer said that a check from the Treasury Department would then be sent to the address they have on file for me.

      I'm in a situation where this money would come in handy (health insurance deductible/medical costs), and I've already unfortunately exhausted my other credit options.

      Any thoughts/precedent on this? I've contacted the attorney I used for the BK, but I guess since I have been discharged they are not required to or willing advise me.
      Hey, Question...who is your servicer? As soon as I filed mine went to ECMC who happens to be the like top servicer for bankruptcy and or delinquent loans. They are a nightmare. The website doesn't work and hasn't for years. You have to call and as soon as I do I get the bankruptcy department and they treat you like your trash b/c you are in a bankruptcy. My loans were never delinquent before my BK. It turns out my loans are not eligible for the interest free deferment supposedly b/c the government told them they don't have to do that for my loans in bankruptcy. They are accruing interest daily and the payments my trustee is making isn't even covering interest. I will owe more when I'm done that when I started. It's a hole I feel I'll never get out of. I literarily cried on the phone with them for like 30 minutes trying to understand why someone who clearly needs the interest free forbearance doesn't get it. I hope your situation is better than mine. I doubt there is anyway for me to recover any payments made to my loan while I'm in bankruptcy.

      Comment


        #4
        Originally posted by eap82 View Post

        Hey, Question...who is your servicer? As soon as I filed mine went to ECMC who happens to be the like top servicer for bankruptcy and or delinquent loans. They are a nightmare. The website doesn't work and hasn't for years. You have to call and as soon as I do I get the bankruptcy department and they treat you like your trash b/c you are in a bankruptcy. My loans were never delinquent before my BK. It turns out my loans are not eligible for the interest free deferment supposedly b/c the government told them they don't have to do that for my loans in bankruptcy. They are accruing interest daily and the payments my trustee is making isn't even covering interest. I will owe more when I'm done that when I started. It's a hole I feel I'll never get out of. I literarily cried on the phone with them for like 30 minutes trying to understand why someone who clearly needs the interest free forbearance doesn't get it. I hope your situation is better than mine. I doubt there is anyway for me to recover any payments made to my loan while I'm in bankruptcy.
        With EdFinancial student loans, the 0% interest is applicable to everyone including bankruptcy. Not sure why ECMC is doing what they're doing, but it's probably impermissible due to the CARES Act. I doubt EdFinancial is doing 0% because they care about former students struggling to pay down student loans.

        Comment


          #5
          Could it be something like the nursing home corporation where I work? They didn't have HAVE to pay us if we got Covid or were exposed/had to stay home back when pandemic started because the CARES act DID NOT cover healthcare workers or front-line workers or companies with over 500 employees. It really stinks.
          I am not an expert. I just share my experiences in the Wonderful Wacky World of Chapter 13! Filed 3-30-18 Confirmed 7-11-18 Discharged 6-8-22

          Comment


            #6
            Originally posted by flashoflight View Post

            With EdFinancial student loans, the 0% interest is applicable to everyone including bankruptcy. Not sure why ECMC is doing what they're doing, but it's probably impermissible due to the CARES Act. I doubt EdFinancial is doing 0% because they care about former students struggling to pay down student loans.
            Actually it's because my government owned loans were sold to ECMC who is a private lender. So without my consent my loans were transferred and no longer eligible for that benefit. Me, someone who had a covid related illness, was hospitalized and pushed into bankruptcy because I had no income and couldn't pay my bills for months probably needs that payment pause more than others. But because I'm in bankruptcy I don't' qualify. I've reached out to the student aid department at the government level to verify. I called student aid today and that's the reason. As it turns out ECMC has the choice and are choosing to continue to collect payments and interest.

            Comment


              #7
              Originally posted by eap82 View Post

              Actually it's because my government owned loans were sold to ECMC who is a private lender. So without my consent my loans were transferred and no longer eligible for that benefit. Me, someone who had a covid related illness, was hospitalized and pushed into bankruptcy because I had no income and couldn't pay my bills for months probably needs that payment pause more than others. But because I'm in bankruptcy I don't' qualify. I've reached out to the student aid department at the government level to verify. I called student aid today and that's the reason. As it turns out ECMC has the choice and are choosing to continue to collect payments and interest.
              What a bunch of ......

              I am sorry you have to deal with this.
              I am not an expert. I just share my experiences in the Wonderful Wacky World of Chapter 13! Filed 3-30-18 Confirmed 7-11-18 Discharged 6-8-22

              Comment

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