Student Loans and witholding of transcripts

[BIGA]

If one has federal loans to attend a particular school and after graduation and after the school has been paid off what if the student later goes into default on those federal loans with the lender (not the school). Does each school have it own policy negotiated betwen themselves and the lenders.

Is the school warranted to withhold transcripts if they have been paid off but not the lending institution for the fedearlly garanteed loan?

If a person anticipates possibly having to file BKK is there any way transcripts can be preserved to enable using them to obtain employment? I know witholding of transcripts and cancelling or professionall licenses is a powerful collection tool.

For instance can a transcript be on file with the recorder of deeds or the department of state and then a certified copy of that be mailed to a prospective employer?

So Assuming I may file how can I protect myself now so I can use my transcripts to secure employment later if I have to?

[lrprn]

Is the school warranted to withhold transcripts if they have been paid off but not the lending institution for the fedearlly garanteed loan?

Yes, the school can choose to withhold your transcripts if you default on student loans because the transcript belongs to the school, not to you. There is no federal law that governs whether they can withhold the transcript or not - it's up to each school to decide how they will handle this situation.

For instance can a transcript be on file with the recorder of deeds or the department of state and then a certified copy of that be mailed to a prospective employer?

Very doubtful that an employer will accept any school transcript that does not originate with the school that compiled it.

There is a light at the end of this dark tunnel though. In re Mu’Min, 2007 WL 2791364 (Bkrtcy.E.D.Pa. 2007)http://www.newyorkbankruptcylitigati...dischargeable/ . Ask your lawyer to send a strongly worded letter to the school citing this case and threatening legal action to see if that doesn't change the school's mind about withholding your transcript.

[BIGA]

This ruling while beneficial to the debtor primarily indicates that one is protected to some degree under the precedent set through the act of filing to access to the auomatic stay correct?

I person who has yet to file is not protected?

[FreshLikeADaisy]

Biga, that's right, if you haven't filed yet the automatic stay does not apply to you, therefore withholding your transcripts would not be a violation of it. After you file, though, that's a different story. Good luck to you!!!

[woeisme]

i don't understand why the school would hold onto the transcripts, they aren't out the money, the guarantor agency is. my student loans paid my school off years ago, i don't think they would even know if i defaulted now (although I haven't)