How Many Types Of Student Loans Are There?

[kornellred]

One of my sons just received his Chapter 7 discharge. He told me that his student loan debts were fully discharged. I said that was not possible - student loan debts cannot be discharged. To which he replied - his student loans were not US government sponsored - therefore, they were in fact discharged.

I don't get it.

[keepmine]

He's mistaken unless, hefiled for an AP to get a ruling on if the loans could be discharged.
BK reform puts private student loans on the same footing as federal.
From 523 {exceptions to discharge}

) unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor's dependents, for--

(A)

(i) an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution; or

(ii) an obligation to repay funds received as an educational benefit, scholarship, or stipend; or

(B) any other educational loan that is a qualified education loan, as defined in section 221(d)(1) of the Internal Revenue Code of 1986, incurred by a debtor who is an individual;

Did he use a lawyer?

[despritfreya]

Keepmine is corrrect. Public or private does not matter. Student loan debt is not discharged unless debtor files a separate adversary and gets either a stipulation with the lender or an Order of the Court that the student loan is discharged.

Des.

[kflores8669]

There are many types of students are available in the any banking sector but the most commonly used types of loans are Federal loans and Private loans.

[kornellred]

keepmine - yes, he used a lawyer.

[HHM]

Almost certainly not discharged. The only type of student loans that are open to debate are loans offered "by/through" trade schools. Truck driving schools are the prime example here...they have some pretty creative financing options and I have seen some of those "options" get discharged in BK.

But regular ole' student loans for college, graduate school, etc, doesn't matter if the loans were sponsored by government or not, non-dischargeable.