Student loan and filing in bankruptcy

[elizabeth1969]

I was wondering how I find out if my student loan is government backed?
I have an alternative loan.

When I asked for a hardship deferment they said they could only offer forebearance? My other loans offered hardship deferment

[Question101]

Sorry

But when they cahnged the last last October it made all student loans non-dischargeable.

Unfortunately for you, you're stuck with them no matter what kind they are.

[Princesskina]

^^^ Only FEDERALLY FUNDED loans were non-discharble. If u went through Citi bank or some other BANK to get the money then it can be discharged those loans are based on ur credit where at SL aren't

[lrprn]

Student loans in bankruptcy have become harder than ever to discharge after the new bk law went into effect last October, Elizabeth. Now most private student loans must be repaid as well, so I'm sorry to say that it probably won't matter even if your loan isn't government-backed. Which organization are you making your student loan payments to? That may help us figure out what kind of loan you have.

Getting a hardship deferment for student loans is very difficult. The only way the loan can be discharged is by proving that repayment of the loan will create an undue hardship on you and your family - in other words, you can't maintain a minimally adequate standard of living and repay the loan. You have to show that the conditions that make repayment a hardship aren't going to improve a lot over time. Does your situation fit this requirement?

This article from Nolo.com does an excellent job explaining your options when you have student loans and can't repay them - http://www.nolo.com/article.cfm/pg/1...3/208/135/ART/ . Well worth a look, and hope this helps.

[lrprn]

^^^ Only FEDERALLY FUNDED loans were non-discharble. If u went through Citi bank or some other BANK to get the money then it can be discharged those loans are based on ur credit where at SL aren't

Unfortunately after last October, this is no longer 100% true, Princess. Some privately funded student loans through private lenders can't be discharged now either - it's a very murky situation at the current time. For the details, see http://www.finaid.org/questions/bankruptcy.phtml - scroll down to the Discharging Student Loans Through Bankruptcy section.

[Princesskina]

Unfortunately after last October, this is no longer 100% true, Princess. Some privately funded student loans through private lenders can't be discharged now either - it's a very murky situation at the current time. For the details, see http://www.finaid.org/questions/bankruptcy.phtml - scroll down to the Discharging Student Loans Through Bankruptcy section.

O okay sorry for giving the wrong info. I was reading another forum and someone claimed there Citi loans were discharged since it wasnt gov't granted but ur right. Thanks for the info.

[elizabeth1969]

One of my loans is called an alternative loan now being serviced by Northstar (total higher education). If I remember correctly I was unable to consolidate this loan with my others.. not sure if I am right about this...

[FraggleRock]

We have about $28K in student loans, those were not discharged. There was about $4,000 in grant-repayment money that was discharged though.

My first semester of school I failed all but one class. I had grants for school expenses.(After that I left that school and went back home to a community college) Any class you fail with a grant you have to pay back the grant. That got sent to collections and for 5 years I've been sending them $25/month. That debt was discharged in the bankruptcy.

I still had about $3,000 in loans and my husband had $25,000 in loans. Those are what we are still paying on.

[seventytwo]

I still get panic attacks with these student loan discussions...my friend is on the board of this site, if it's of help to anyone:

I sometimes physically freeze or can't breathe when remembering what I personally experienced, and how many resources the student loan industry uses to silence people and influence Congress.

(Sorry if this is off-topic!)

[monlyba]

i have over $40k in student loans and chose an industry that typically pays poorly ($25-40k annually - if you're lucky)... plus i'm unemployed right now since i haven't found a job that pays enough to justify the cost of gas and daycare now that i have a baby... GRRR it's really frustrating. i wish i knew of a way to cut it down or work it off or something.

[so-beyond-broke]

I have over $40K in student loans myself. I originally was with Citibank but had it consolidated in 2005 with Nelnet. In 2005, I had experienced many hardships was out of work on 2 different occasions and collected unemployment so I didn't have to pay Nelnet (had 2 six month deferments). Prior to filing my BK I qualified for a hardship deferment for a year. Based on my earnings and filing out some worksheet, it would have been a hardship to pay $230 a month for 25 years. It goes into repayment in May 2007 plus the mounting interest at 2.875%.

I only wish that this could be discharged as well. After all student loans when used appropriately to further an education is good debt at least that's what Suze Orman says.

sbb