Student Loan Documents..Getting Copies

[SoccerDad]

Hi. Too make a long story as short as possible, I have student loan debt which I am hoping to be able to discharge through chapter 7. I know this will be difficult. Here is the jist of my story:

The loans are rather old. They date from 1993-1998, and are all from the same source (Alaska Commission on Postsecondary Education).

I was in default on these loans not to long after graduating in 1998. This lasted for a few years. When I finaly got my act together, I was able to work out a deal with ACPE, basically bringing my account current, but extending the life of the loan, and of course pay A LOT more in the long run with interest. etc. etc.

Upon agreeing to this back in 2003, I have slowly and proudly built up my credit rating to an acceptable level. The cost of doing this, however, is the high monthly loan payment. I have never missed a payment. However, the payments are getting me nowhere on the loan.

Here are the stats:
$31,000 was the original money loaned for school.
$39,000 is the principal balance NOW, with a payoff amount of $43,000.

My principal is going NOWHERE. For example, in 2007 I sent in payments totalling $4,332. Of this amount, $3,837 went straight to interest! So far this year, $644 of my $736 has gone down the toilet. I can barely make the minimum payment, let alone try and send in more.

These loans are obviously a decade old, and I have long since lost the paperwork. Can I contact the ACPE and ask them to send me copies without their hairs getting raised? And if so, EXACTLY WHAT DOCUMENTS AM I ASKING FOR? I need to discover if this loan is considered PRIVATE or not, and of course look over all of the fine print.

Sorry for the lengthy post. Hope it all makes sense. THANKS.

[lrprn]

These loans are obviously a decade old, and I have long since lost the paperwork. Can I contact the ACPE and ask them to send me copies without their hairs getting raised? And if so, EXACTLY WHAT DOCUMENTS AM I ASKING FOR?

You just gave the best answer for what to say when you contact ACPE - you want to replace lost copies of your signed loan agreement. That's all you need to say. Another good thing to ask for while you're at it is the entire payment history of your loan month by month along with what is owed currently.

I need to discover if this loan is considered PRIVATE or not, and of course look over all of the fine print.[/B]

Since your ASPE loans are state-sponsored - http://alaskaadvantage.state.ak.us/ - my guess is that they are considered government loans, not private.

And not to discourage you, but as you already said, it is highly unlikely you will be able to discharge these student loans, especially since you have been making regular payments on them for so long.

However, all is not lost. Take a look here - http://www.nolo.com/article.cfm/pg/1...3/208/135/ART/ . Nolo gives excellent advice about what your options are when you can't pay your student loans. Pay particular attention to the section about Cancelling Student Loans that starts towards the end of part 3. Lots of possibilities mentioned here to set up forgiveness of at least part of the loan owed.

If the loans are considered "federal", then there is a 25-year maximum on payments. After that, the remaining balance is forgiven and you're done.

Have you thought about contacting your congressional representatives to share your story? They really do need to hear it and gain some understanding about how millions of students are trying to do the right thing but in essence have been placed into a never-ending debtor's prison with no end in sight.

I feel your desperation and wish I had more positive advice to offer than this. Hang in there. I hope you find some relief soon.

[SoccerDad]

I appreciate your response. If I plan to ever get out of this rut, I have no choice but to try and beat the odds here and attempt to get my student loans accepted by the judge.

So I assume that state-government loans are not related regualtions-wise to federal loans? I tried one of those "student loan consolidator" companies once, but was told that my loans were not federal and therefore not qualified. That's why I thought maybe there were private.

My balance was just under $40,000 when I came clean with these folks a few years back. Today, after years of never missing a payment, my balance is STILL just under $40,000. This is hard-earned money that I continue to throw into the wind. Money that could be spent saving for a better degree, a more reliable car, an IRA, or various other things that could better my life.

This might be a strange question, but does one actually go through with the bankruptcy BEFORE getting a decision on whether the loans would be included? It would be a waste for me to file if the judge turns me down, because the rest of my debt is quite manageable. If erased, I'd still be faced with the same problem. My student loans account for a decent chunk of my debt.

[danaf]

strange because if they were gov't, the interest rate would be low enough where alot of your payment would go towards the principal balance and not interest. So I'm with you on this, they sound private but until you get the paperwork, hard to know. Or maybe just call them and ask? They have to tell you.

I have one of those private student loans too so I know where you are coming from. When I lost my job last year, they wouldn't put it into deferment. They want to be treated like student loans but they don't behave like student loan lenders. I know I won't be able to discharge mine in bk however I am hoping that when the democrats win office, this bk business will be one of the things they will change esp. where it concerns private student loans. And at that point, if they allow student loan discharge, I will see if I can't apply.

[biotechsolution]

you won't know whether the student loans are dischargeable or not until they try to collect post-discharge. Or you could file an adversary proceeding during the bk to determine the dischargeability of the loans.

But unfortunately you won't whether you can discharge them or not until after you've filed and a good bit into the bk itself.

[danaf]

? the 2005 reform made it nearly impossible to get rid of student loans via bk - both federal & private. I wish I could talk to one person post 2005 who was able to get rid of a sallie mae signature loan via bk.

[krielly]

[QUOTE=SoccerDad;143984]This is hard-earned money that I continue to throw into the wind. Money that could be spent saving for a better degree, a more reliable car, an IRA, or various other things that could better my life. [QUOTE]

From what I understand about discharging student loans, you have to prove a hardship. What you mention above does not seem to indicate a hardship.

I'm certainly no lawyer, but that is my understanding. Others can chime in......

[cj0203]

I used to work for a student loan company, and yes they are VERY hard to get rid of. Usually the only way to get rid of them is if you have a permanent disability or something like that which would limit your income indefinitely. Since you are making payments (yes, I know most of it's interest but you ARE making payments) you would have a hard time proving hardship.

I hope I'm wrong, but I know LOTS of people in your situation who have no choice but to keep paying the loans even when it's not getting anywhere. Sorry

[SoccerDad]

I don't want to make myself sound like a weasel here, but...

Ok, student loans aren't dischargeable. What if one was able to get, say, a $25,000 personal loan from somewhere, then used that money towards paying off a sizeable chunk of student loans. Then this someone declares Chapter 7. Will this $25,000 personal loan now magically be dischargeable?

I know it sounds silly to think like that, but our legal system in general is quite comical too...

[HHM]

I don't want to make myself sound like a weasel here, but...

Ok, student loans aren't dischargeable. What if one was able to get, say, a $25,000 personal loan from somewhere, then used that money towards paying off a sizeable chunk of student loans. Then this someone declares Chapter 7. Will this $25,000 personal loan now magically be dischargeable?

I know it sounds silly to think like that, but our legal system in general is quite comical too...

You would probably need to wait at least a year from the date you took out that "loan" before you file BK. And you would at least have to make minimum payments on that loan during that time.

[SoccerDad]

You would probably need to wait at least a year from the date you took out that "loan" before you file BK. And you would at least have to make minimum payments on that loan during that time.

Thanks for the quick response.

Another question I had is in regards to all of the interest and finance charges that have piled up over the years. I know my student loans have changed hands at least twice over their lifetime (colection agencys and now back to the original lender) and I'm wondering if all the charges are legit, or if I perhaps have been double charged here and there... What kind of lawyer or counselling would I seek if I wanted someone to look these numbers over? It would be way above my head.

[HHM]

Thanks for the quick response.

Another question I had is in regards to all of the interest and finance charges that have piled up over the years. I know my student loans have changed hands at least twice over their lifetime (colection agencys and now back to the original lender) and I'm wondering if all the charges are legit, or if I perhaps have been double charged here and there... What kind of lawyer or counselling would I seek if I wanted someone to look these numbers over? It would be way above my head.

You would first need to have the loan documentation. Since education loans are more highly regulated than other loans, even if you were double charged or somehow charged extra for something, we are probably only talking about incremental amounts. So, I'd suggest, you figure out what you are going to do about the loan. The problem you have is you don't have many options. The loan needs to be paid one way or the other (or you need to be fully disabled)...it is that simple. Realize, the idea of taking a basic consumer loan to pay off your student loan is risky...given the amounts involved...and the fact that it would not be too hard for someone to put two and two together by simply looking at your credit report. I only suggest waiting a year "at a minimum", but because of the amounts involved and how easy it will be to spot the transaction, you would probably need to wait more like 2 years. If you go that route, and fail, you would then have a non-dischargeable debt. Your only other option is to become judgment proof and let the chips fall where they may.

[SoccerDad]

...Your only other option is to become judgment proof and let the chips fall where they may.

Not sure I understand this term?

But thanks again for the replies. You've been helpful.

[lrprn]

Not sure I understand this term?

Judgment-proof = have no assets that a creditor can liquidate or garnish to pay off what you owe.

Being truly judgment-proof means you can't own a house or car that a creditor can place a lien against, or have a income paid by an employer. Most states allow up to 25% of your salary to be garnished to pay off creditors, including student loan creditors.