Sallie Mae Signature Student Loan

[danaf]

I know student loans aren't generally dischargeable but is everyone sure that a Sallie Mae Signature Student Loan isn't either? It is unsecured debt. They don't allow deferrments like the true student loans (loss of job ect). Hec - I've been paying on it for a long time and the balance hasn't moved. I would love to be able to get it discharged. It is just like any other loc with a high interest rate. I don't see why just because they call it a signature student loan that it is treated as the others.

[lrprn]

I know student loans aren't generally dischargeable but is everyone sure that a Sallie Mae Signature Student Loan isn't either? ... I don't see why just because they call it a signature student loan that it is treated as the others.

If you had filed bankruptcy before Oct 2005, then this private student loan would have been treated differently and may well have been dischargeable then. Unfortunately you can thank our 2005 Congress for voting to change the bankruptcy law, and one of those changes was making private student loans just as hard to discharge as government student loans.

Sorry but the chances are 99.9% that you will have to pay this private student loan back in total. Be sure to write your state's congresspersons and tell them "thanks a lot" for selling out to big campaign contributions from Big Credit.

[danaf]

thanks lrp - dang new laws.

but I will say this - if I can't discharge this particular loan I will make it work in my favor. Since non-discharchable debt are factored into monthly expenses - if I am skewed at all against my favor on the means test I will get the monthly payments raised to make it right. I think this is legal and above board.

[lrprn]

but I will say this - if I can't discharge this particular loan I will make it work in my favor. Since non-discharchable debt are factored into monthly expenses - if I am skewed at all against my favor on the means test I will get the monthly payments raised to make it right. I think this is legal and above board.

Since student loans are typically put into forebearance ("put to sleep") during bankruptcy, there's variability between bk districts about whether student loan payments can be factored into your monthly expenses. Ask your lawyer what's allowed in your district. If you are lucky, you'll be able to count them in - sure hope so!

[danaf]

oh mamma - I factored in my secured debt. What about car loans? Without the student loans factored in, that leaves me with an extra 400+ a month. That is not good for a 7.

[lrprn]

oh mamma - I factored in my secured debt. What about car loans?

Car loans are secured by the car itself - they are fine to include.

Chances are because student loans are not dischargeable, they are fine to include in your monthly expenses too - you just have to verify this with your lawyer.

The problem is that Congress created a mess around student loans in bankruptcy by stating that they are not dischargeable, but are still considered unsecured. Totally illogical, but there it is. Idiots!

[$$only4ever]

I filed in February 2005 and we co-signed with our son for a Career/Training loan with Sallie Maie which is not eligible for any deferments, forbearance, etc. However, when we filed, Sallie Mae put an Administrative Forbearance on this loan for the duration of the bankruptcy. It is in our confirmed plan that we are allowed to make monthly payments in addition to the trustee sending a monthly payment. (Sallie Mae filed a proof of claim). But it was made very clear to us by attorney and trustee that this loan would not be dischargeable after bankruptcy was discharged.