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Student Loan Distribution Stopped

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    Student Loan Distribution Stopped

    Went to class tonight and there was a letter from financial aid officer waiting for me. Basically stated since I filed bankruptcy I would not receive the next 3 disbursements of my student loans this year. I listed them on my Chapter 7. I was not delinquent since I am in-school deferred. They were federal student loans and not dischargeable. I was not expecting that piece of news.
    After I receive my discharge I can reapply. Lucky for me my tuition was already paid.

    #2
    Wow! I wouldn't have been expecting that. I honestly don't understand why it is a problem. Did you talk to your attorney about it? What if your tuition hadn't been paid or you were counting on that money to pay for living expenses?

    I'm honestly surprised to hear that they can do that!

    Good luck to you!
    Amy M.
    NW Washington

    10/16/05 - Filed Chapter 7

    11/14/05 - 341 Meeting - DONE!!!

    1/6/06 - Discharged!!!

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      #3
      I talked to the loan company and that is what I was told. I was told even if I had not listed tehm in the pettion they would have been notified.
      Living expenses are tight since I am unemployed.
      I do not have an attorney. I plan to contact one regarding one of my creditors collected my tax refund after they were notified of the filing. They are trying to lift the automatic stay for an unsecured debt in collections. When I mentioned this to my trustee he told me that if they were successful they would only be entitled to the portion that was not the Earned Income Tax Credit.

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