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Automatic Stay and Student Loans?

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    #1

    Automatic Stay and Student Loans?

    Just curious...

    This board has been so helpful! I'd be a complete basket case without it!

    I know that student loans cannot be discharged but, are they subject to the automatic stay?

    We just filed Chapter 7 on May 31st. All of the phone calls have stopped (YAY!!!). I tried to log into my SallieMae account as I have a student loan payment coming up next week. They have locked me out and I have not received the usual email letting me know how much to send. I have always made the payments online so they do not snail mail a bill to me. As the interest rate on the private loans has changed almost every month, I have no idea what amount they need this month.

    Do I keep trying to pay them something or do they have me "on hold" until after this is all over with?

    Thanks!
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    #2
    I believe they have you on hold till after the "stay". They by law have to abide by it also even though your student loans are non-dischargable.

    Just be ready to catch them up when the stay is lifted and get your student payments back on track.....
    Minny

    "It's amazing the paths that our feet sometimes follow in life".

    My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.

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      #3
      All of my students loans went into deferment when I filed. One of them for a year! Yes, they have to abide by the automatic stay, and will defer your payments if you listed them as a creditor.
      Chapter 7 filed 4/23/07
      341 Meeting 5/22/07
      Last day for Objections 7/23/07 - Discharged 7/25/07 - Closed 7/31/07
      On to rebuilding!

      Comment

        #4
        Student loans are typically placed into deferment when you file bankruptcy. However unlike other unsecured debts, student loans continue to charge interest while they are in deferment. Once your case is closed, contact Sallie Mae immediately to start up your payments again.

        A suggestion - don't just pay the suggested monthly payment. Typically what Sallie Mae and other student loan lenders ask you to pay on the monthly bill is just enough to cover the interest each month and not any more.

        Don't be fooled - check the suggested payment against how long it will take to pay off your entire loan using a financial aid calculator like the one at http://www.finaid.org/calculators/loanpayments.phtml . Pay enough each month to pay the interest plus bring make a dent in the prinicipal owed too.
        I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

        06/01/06 - Filed Ch 13
        06/28/06 - 341 Meeting
        07/18/06 - Confirmation Hearing - not confirmed, 3 objections
        10/05/06 - Hearing to resolve 2 trustee objections
        01/24/07 - Judge dismisses mortgage company objection
        09/27/07 - Confirmed at last!
        06/10/11 - Trustee confirms all payments made
        08/10/11 - DISCHARGED !
        10/02/11 - CASE CLOSED
        Countdown: 60 months paid, 0 months to go

        Comment

          #5
          Thank you all so very much! I really appreciate all of the information on the boards. That loan payment calculator really has opened my eyes!

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