Student Loan Payments

[ksgirl38]

I realize this has been asked before, but I never did see an answer. I have student loans through Sallie Mae that are in repayment. Federal, not private. My understanding is that once I file the loan goes into forbearance or deferment, is this correct? So is it best to keep making the payments anyway and just mail them or should I just stop until my BK is discharged? I've heard that I'll lose access to the website anyway. I'm all current now and I'd prefer to stay that way, but if they are going to go into forbearance/deferment anyway and it wouldn't hurt me then I'd like to take those payments and put them into my Roth IRA to get caught up since I'm behind in that this year. Does anyone know?

Thank you.

[MSbklawyer]

I realize this has been asked before, but I never did see an answer. I have student loans through Sallie Mae that are in repayment. Federal, not private. My understanding is that once I file the loan goes into forbearance or deferment, is this correct?

No, not correct. Your loans don't go into any kind of deferment just because you file bk. The holder of your loans is forbidden by the Automatic Stay from taking any action to collect the loan. But there is a difference in that and deferment.

So is it best to keep making the payments anyway and just mail them or should I just stop until my BK is discharged? I've heard that I'll lose access to the website anyway. I'm all current now and I'd prefer to stay that way, but if they are going to go into forbearance/deferment anyway and it wouldn't hurt me then I'd like to take those payments and put them into my Roth IRA to get caught up since I'm behind in that this year. Does anyone know?

I'm assuming you're filing Chapter 7? Then yes, keep making your payments.

Thank you.[/QUOTE]

[lorelei]

I'm in a situation where I should be getting a discharge later this month, but my case won't close until a miracle happens, and either the trustee sells my house or gets smart and gives up on trying to sell it. Until either of those happen, my case won't close. Does the stay last until discharge or all the way through the case closing?

[JessMN]

My Sallie Mae loan went into automatic forbearance when I filed bk - and they wouldn't even talk to me on the phone about them.

[JessMN]

I'm in a situation where I should be getting a discharge later this month, but my case won't close until a miracle happens, and either the trustee sells my house or gets smart and gives up on trying to sell it. Until either of those happen, my case won't close. Does the stay last until discharge or all the way through the case closing?

Until discharge - mine has been discharged 10 months and still not closed but Sallie Mae started billing em again about a month after d/c

[ksgirl38]

My Sallie Mae loan went into automatic forbearance when I filed bk - and they wouldn't even talk to me on the phone about them.

I knew I'd seen someone mention this. Did Sallie Mae send you a letter notifying you that they were placing your loan in forbearance? Just wondering. Thank you.

[JessMN]

I'm sure they did, but I don't quite remember because I had called them right after (a few days) I filed and they told me it was in forbearance so if they sent a letter I didn't pay attention. They DID send a letter afterwards telling me to start paying again!

[ksgirl38]

I'm sure they did, but I don't quite remember because I had called them right after (a few days) I filed and they told me it was in forbearance so if they sent a letter I didn't pay attention. They DID send a letter afterwards telling me to start paying again!

Well I had previously had an unemployment deferment or forbearance on my loans so I didn't know if the BK would automatically put them into forbearance or if it's handled on a case by case basis. I guess it would just be nice to have that extra money to apply to some other things, even if it's only for a couple months. At 3.19% interest I'm not concerned about interest piling up since I know I'm going to be paying it off for the next 10 years anyway.

[JessMN]

I had just had a forbearance on my loan too, so that didn't make a difference... I swear somewhere around here someone said it was an automatic forbearance...which is what my experience was (I didn't ask for it, and actually when I had called Sallie Mae they said they couldn't talk to me because my account was in forbearance due to bankruptcy)


here's one...http://www.bkforum.com/showthread.ph...-BK-7-deferred
another...http://www.bkforum.com/showthread.ph...t=forebearance

[ksgirl38]

I had just had a forbearance on my loan too, so that didn't make a difference... I swear somewhere around here someone said it was an automatic forbearance...which is what my experience was (I didn't ask for it, and actually when I had called Sallie Mae they said they couldn't talk to me because my account was in forbearance due to bankruptcy)


here's one...http://www.bkforum.com/showthread.ph...-BK-7-deferred
another...http://www.bkforum.com/showthread.ph...t=forebearance

That's what I thought too - an automatic forbearance. Just trying to determine what to expect after I file.

[MSbklawyer]

Well, I guess I learned something. You get an automatice 'forbearance' in addition to the automatic stay.

[mlsj2009]

LOL. They just don't seem to want to listen to what you write sometimes, do they? They find that the legal jargon is just too confusing, I guess. They refuse to read the dictionary and find out how to just simply communicate. Geeeze.

Well, I guess I learned something. You get an automatice 'forbearance' in addition to the automatic stay.

[JessMN]

LOL. They just don't seem to want to listen to what you write sometimes, do they? They find that the legal jargon is just too confusing, I guess. They refuse to read the dictionary and find out how to just simply communicate. Geeeze.

I hope the "they" in this scenario isn't me - I happen to have an IQ of 154 and can read quite well and take offense to your statement.

I was only telling the OP MY experience with Sallie Mae, I never said it was a law nor automatic for everyone. However I have read many, many times that this is Sallie Mae's practice (check out the Student Loan section of these forums). I was also stating what Sallie Mae told me. The OP should really call Sallie Mae IMO and ask them about their particular account, but I thought my anecdotal experience might help.

[LadyInTheRed]

People often say on these boards that student loans are automatically put in forebearance. But, somebody posted very recently that they came out of BK to learn their student loan was in default. It may vary by lender. Or maybe federal loans automatically go into forebearnce, but private loans don't. The best way to know for sure is to contact your lender. If they won't talk to you, try having your attorney write a letter saying it is okay for them to talk to you. Or call the lender and ask before you file.

[mlsj2009]

I hope the "they" in this scenario isn't me - I happen to have an IQ of 154 and can read quite well and take offense to your statement.

I was only telling the OP MY experience with Sallie Mae, I never said it was a law nor automatic for everyone. However I have read many, many times that this is Sallie Mae's practice (check out the Student Loan section of these forums). I was also stating what Sallie Mae told me. The OP should really call Sallie Mae IMO and ask them about their particular account, but I thought my anecdotal experience might help.

I am sorry, but for someone with such a high IQ, you do take offense easily. I was not trying to offend you, Yoda. Even if a representative from Sally Mae said there was such a thing as an automatic forbearance, would that make it law, right, moral, or whatever? Maybe you could quote the statute to me where an automatic stay means all debt is automatically in forbearance. What MSbklawyer was saying is correct. You can still pay your student loans through a Chapter 7 bankruptcy, and even make it part of your plan in a Chapter 13. Interest continues on during this time, and you still owe the debt. The automatic stay, Yoda, simply prevents the creditor from taking collection activity during the bankruptcy process. That means they cannot legally contact you. Sally Mae can make their own policies about how they handle debtors filing bankruptcy except they cannot conflict with bankruptcy law. Sally Mae employees may call what they do automatic forbearance but that hardly makes it bankruptcy law. They are just salaried employees that work for Sally Mae. Sorry, but you missed the main point. MSbklawyer answered ksgirl's question fully. I was just laughing at your's and Ksgirl's response of all the gobbly gook that followed. I do understand how confusing it can be. Now, try and use that 154 IQ for something more than a silly argument in bankruptcy forum, would you? And lighten up and laugh at all this. I am.