Student loans in bankruptcy

[yak411]

My case was confirmed on 2/6/08!! What I relief! Now I have more questions. I just looked on access13 at the breakdown of my payments. It looks like roughly 13,000 will go toward my student loans!! I am pleased about that but now I have a question. Does interest accrue on these loans while in the CH13? If so then the 13,000 will only be covering interest. Can this be claimed on my taxes even though it is in the CH13?

[MajorMike]

yup, interest accrues. Not sure about the taxes. $13K only covers the interest? Were you in a doctorate or Masters program?

[yak411]

Masters degree and post graduate work. Thankful for the degree. Only way I could make any money.

[southerncomfort]

I have about $80,000 worth of student loans in my plan being paid back at 100%. The only thing that trumps student loans (a priority creditor) are secured loans--like your house or car--so is the majority of payment going to those items?

[yak411]

My house and car are not included in the plan at all. Also, I am not upset with the payment only covering the interest...better than having the interest to deal with at the end. By the time this bankruptcy is discharged I will be in a better situation to deal with the student loans. So, does anyone know if I can claim the interest paid on my taxes while in bankruptcy?

[woeisme]

It's your money paying the interest, whether it comes through the trustee or directly from you. So why wouldn't you be able to deduct the interest? We didn't file until September of 07, but got a statement for our interest payments for last year that included payments made post filing (ours is being paid outside the plan so we just kept making regular payments after filing) and we claimed it on our taxes. We went to Jackson Hewlitt and I told the preparer that we had filed BK, and she said that doesn't affect the tax law in any way except that we can't do electronic refund.

[southerncomfort]

Yes, you can claim the interest--I claim it every year.

[MOMof3]

My Student Loans are getting paid out EXACTLY the same percentage as other unsecured creditors---only difference is that they are not dischargable.

[yak411]

Thank you all so much. I am relieved to know that I can claim the interest on taxes. My loans are not dischargeable either.

[fslady]

Student Loan Interest Paid in Plan

On Pacer the monthly description of my student loan payment says that is is "Principal" - and I didn't receive an interest statement this year. I can't believe that Sallie Mae would take the money with no interest. Has anyone called to get their interest? If you have - do they give you a hard time about the BK? Thanks for any answers or advice.

[Tribecca]

On Pacer the monthly description of my student loan payment says that is is "Principal" - and I didn't receive an interest statement this year. I can't believe that Sallie Mae would take the money with no interest. Has anyone called to get their interest? If you have - do they give you a hard time about the BK? Thanks for any answers or advice.

I have "direct Loans" account. Its much easier to go on-line at their website and get all your account and balance info, without telephoning them. If you don't have Direct Loans, I would imagine their our sites for others also where you can access your account info and status.

[yak411]

I noticed that Pacer also indicates Priniciple for my student loans but I am told that they continue to accrue interest while in chp 13...go figure!!