Student loans after filing and discharge.

[adviceplease]

Is/was anyone a college student when they filed BK? How did it affect your student loans?

I recieve a PELL, and a subsidized and unsubsidized loan and I have not defaulted on them. I have 1.5 years left and will need the loans to finish. I have a loan to be disbursed for my classes and books on 9-28 and the extra will come to me and the lawyer said I can use that money to pay the rest of their fee (which I hate to get extra for this but I have no choice) but I will retain on 9-18 and most not likely get the extra until mid October and I worry they will take my loans or the extra money once I retain.

[lovebirds]

Is/was anyone a college student when they filed BK? How did it affect your student loans?

I recieve a PELL, and a subsidized and unsubsidized loan and I have not defaulted on them. I have 1.5 years left and will need the loans to finish. I have a loan to be disbursed for my classes and books on 9-28 and the extra will come to me and the lawyer said I can use that money to pay the rest of their fee (which I hate to get extra for this but I have no choice) but I will retain on 9-18 and most not likely get the extra until mid October and I worry they will take my loans or the extra money once I retain.

When did/will you file? What is the loan money for since it is "extra"? Who do you think will take the loan?

[adviceplease]

I will retain on 9/18 and the lawyer will file mid October once I pay them in full.

I recieve a subsidized and unsubsidized loan each semester from sallie mae through my college. They give me what is left of the loan after my classes and books are paid for. This money is optional if I want it for additional supplies, gas, and other living expenses. I usually take it to pay the bills because I am not working right now so it is around $1500-$2000 a semester (3 times a year). It is required to be paid back after 6 months after graduation or leaving school with the rest of my loans.

The school has me confirmed to recieve the full amount of all my loans for the entire year and will give me the left over as a refund every semester after I have been in class for a week. This will be around October 9th for this semester. I am afraid that because I retain the lawyer they may decide to say no to the loan of the excess refund. The lawyer will not file until I recieve the refund though.

I was just wondering if anyone had the lender back out after BK or when it was filed.

[lovebirds]

No, those student loans are government backed. When you retain your lawyer, there isn't a red flag in the financial system that alerts Sallie Mae (who wouldn't care anyway b/c student loans are not dischargeable anyway).

Also, Is there a reason why you aren't working? I got an on-campus job as a lab worker and made $8 per hour for sitting around and studying. There's no reason you shouldn't try to work in between your classes if you are taking regular day-time classes.

I would try to steer clear of Sallie Mae for the rest of your student loans. Try Federal Direct Loans which is straight from the government. Sallie Mae is horrible to deal with once you start repayment.

Also, be careful how you time the bankruptcy. I don't think you are allowed to get a loan after filing but before discharge.

Your lawyer will help you out with the timing hopefully.

[backtoschool]

Your financial aid will not be affected by bankruptcy, unless you ever defaulted on any of your loans.

If you applied for financial aid before you filed for bankruptcy, and are getting a disbursement after you file, you are fine. If you get your disbursement before you file, you will have to count it as a cash asset and exempt it.

Sallie Mae will get a notification of your bankruptcy and will put a flag on your account that will stop all correspondence until you are discharged. They will also contact your school who will check to make sure you are not including any loans in your bankruptcy and that you have not defaulted on any loans. If you have not defaulted, and have not requested a special proceeding to claim "hardship" and get your loans discharged, then you will get the aid money. You may have to fill out a new master promissory note after you file, but you will still get the money.

[adviceplease]

Thanks for the replies.

backtoschool- will they only count the money that I actually get out of the disbursement or the whole amount borrowed even the part paid to the school? I have to reapply for 2011 but it is after the BK is done so I will be fine then also?

lovebirds- my child is disabled and a family member use to babysit but can no longer due to cancer. The special needs day care providers cost just as much as I make working. I am going to school for a career that pays 3 x's what I can make now and I only have 1.5 years left and then I can go back to work full time. I have tried to get a job in home care for when my husband is home to watch her or on the weekends but they kept giving me cases and then before I even went the patient passed away, was back in the hospital, or decided they did not need home care. I need a flexible job to work around full time school and future clinicals and a lot of places do not want the hassle when they can get someone that is available when they need.

My college only gave me a couple options on who to get my FA from, how do I go about changing the lender? I looked into being a lab aide but they do not pay you they apply the money towards your tuition in a work study from what I understand.

[backtoschool]

Thanks for the replies.

backtoschool- will they only count the money that I actually get out of the disbursement or the whole amount borrowed even the part paid to the school? I have to reapply for 2011 but it is after the BK is done so I will be fine then also?

lovebirds- my child is disabled and a family member use to babysit but can no longer due to cancer. The special needs day care providers cost just as much as I make working. I am going to school for a career that pays 3 x's what I can make now and I only have 1.5 years left and then I can go back to work full time. I have tried to get a job in home care for when my husband is home to watch her or on the weekends but they kept giving me cases and then before I even went the patient passed away, was back in the hospital, or decided they did not need home care. I need a flexible job to work around full time school and future clinicals and a lot of places do not want the hassle when they can get someone that is available when they need.

My college only gave me a couple options on who to get my FA from, how do I go about changing the lender? I looked into being a lab aide but they do not pay you they apply the money towards your tuition in a work study from what I understand.

They will only count the "refund" ie, the amount that you have left after tuition is paid.

You should be able to keep that from being in your bank account on the day you file. Just don't have the school disburse it to you until the day after you file, and then you do not have to exempt it.

Reapplying in the winter for 2011 won't affect you at all.

[adviceplease]

I wish I could have the school hold it but I need it to be put in my account so the lawyer can be paid. They will let me put $500 down to retain them but I have to pay the rest before they file it and I have to get the money from the loan because I just do not have that much money at one time. I never realized before this just how far off we were each month because of the credit cards getting so bad. I have several cards that the minimum went from $50 a month to $150+ because of the intrest rate changing.

My house is worth $72000 less than what I owe on it now so even with the $10,000 in equity that my cars have I hope I am still able to exempt the loan.

[backtoschool]

I wish I could have the school hold it but I need it to be put in my account so the lawyer can be paid. They will let me put $500 down to retain them but I have to pay the rest before they file it and I have to get the money from the loan because I just do not have that much money at one time. I never realized before this just how far off we were each month because of the credit cards getting so bad. I have several cards that the minimum went from $50 a month to $150+ because of the intrest rate changing.

My house is worth $72000 less than what I owe on it now so even with the $10,000 in equity that my cars have I hope I am still able to exempt the loan.

Well, Michigan allows federal exemptions, so you should have enough wild card exemption left to cover the loan.