Student loan while in active 13?

[filingin08]

Two questions actually...

1) Husband has loans for this academic year for his final year of school. First disbursement will be sometime mid-September. We will file bk end of Sept. Second disbursement will be sometime January. Is that considered new debt? Or just a disbursement of existing debt?

2) I want to go to school next fall. I might be able to do it without loans thanks to tuition remisssion benefits at work; however, for books, etc. a loan would be mighty nice to have access to. Can you get a student loan while in an active 13 without the consent of the trustee? If not, are they typically granted (i.e., is it routine)? Or is it a rare occurance?

[TiredOfItAll]

I have had and continue to have student loans while in a chapter 13. The only problems I have had is that I seem to have to explain to Sallie Mae before everything again and again and again to Sallie Mae. I apply for the loan and then they send me a letter saying they need more information. I call in and someone says it appears I have defaulted on student loans before and I explain the whole chapter 13 thing......they investigate and then my funds are released. In fact, I just got off the phone with Salle Mae doing the same thing again about a disbursement scheduled for next week. It all always works out but is a pain in the rear during the process.

[filingin08]

Do you have to notify the trustee at any point?

[TiredOfItAll]

I never have. I don't know if we are supposed to, but I know that I have read that being in bankruptcy does not keep you from being able to get student loans so I don't think it matters.

[lilabelle]

Do you get to keep your disbursement? I just got mine, roughly 5k, and it's sitting in my bank account. I've got proof it's from student loans, but my lawyer doesn't know if I get to keep it or not. Crap. I'd rather send it back to the original lender (and go into less non-dischargeable debt) than use STUDENT LOANS to pay credit card companies. Granted, if it weren't for student loans and I hadn't foolishly paid so little attention to where my money was coming from and where it was going, then I would have had to go bankrupt years earlier. They've already gotten sizable chunks of my 15k/year student loan debt. Wahh. I am such a big baby.

But seriously. Can I keep the disbursement (I want to use it over the summer for research on my dissertation)? If I can't, can I just give it back to my lender?

Many thanks,
lilabelle

[truckerswife]

Do you get to keep your disbursement? I just got mine, roughly 5k, and it's sitting in my bank account. I've got proof it's from student loans, but my lawyer doesn't know if I get to keep it or not. Crap. I'd rather send it back to the original lender (and go into less non-dischargeable debt) than use STUDENT LOANS to pay credit card companies. Granted, if it weren't for student loans and I hadn't foolishly paid so little attention to where my money was coming from and where it was going, then I would have had to go bankrupt years earlier. They've already gotten sizable chunks of my 15k/year student loan debt. Wahh. I am such a big baby.

But seriously. Can I keep the disbursement (I want to use it over the summer for research on my dissertation)? If I can't, can I just give it back to my lender?

Many thanks,
lilabelle

I don't know what kind of loan you got. I just got approved for federal loans. It specifically says in the loans that you can only use it for education related expenses. So I don't see how the trustee could take it for debt. Technically I am suppose to request approval of the trustee for any new debt over $1000. I don't really think my loan would apply to that though. The disbursement happens after Sept 16. Payments wouldn't have to start until I was done with school and my plan is suppose to be done around November.

[filingin08]

We're in a similar situation. Filed 9/26. 1st disbursement was early September. Received 2nd disbursement in January. We felt it was a loan agreed to before filing, so we didn't consult anyone on it.

I asked my atty about a SL for me if I went to school next year (surprise baby put that on hold), anyway, she said if it was over $500, we would have to get okay from Trustee.

My husband is "this close" to his doctorate and another year of loans would sure come in handy with those disseration hours he has to enroll in.

So, my question might be, what happens if you don't tell the Trustee? We don't want to be dismissed, but if he says "no" we're up a creek.

[DUMBAGAIN]

I've had the same questions about student loans. My job is pressing me to finish my degree we do get some reimbursement, however it is not enough to cover all classes. I wish we had a solid answer about this.

[sassiebaz]

I wish I had the answer to your question. I'd like to believe they don't have anything to do with your chapter 13 since you can't discharge them. I am in a similar situaion. I had a student loan come in about a month ago and did have to use it for some bills. I have another one set to disburse soon but we are hoping to file soon. I will be asking my attorney about this on Thursday. I am worried the trustee may question me about the loan and where it is today. But, since it was before we file I don't understand why it should matter. We'll see. I will let ya know what happens....