Sallie Mae said "Paid in Full"??

[emmacat]

I'm skeptical. Just got off the phone with Sallie Mae. I called to ask them about the status of my loan because I didn't make payments while in chapter 7 which was discharged in September. I didn't receive anything from them after the discharge.

She informed me that the loan was "PAID IN FULL." I questioned her about that, and she again confirmed that I didn't owe anything. This was a private $5,000 loan for a career training program that was not accredited when I received the loan.

If a private career loan is discharged, would it say "paid in full"?

Is it possible that a collector bought it and will be harassing me soon? How can I confirm that I don't owe anything? Would it be on my credit report?

[backtoschool]

Did the school close? Sometimes if the school closes, your loans will be forgiven if the credits are not transferrable and the school is not accredited.

[jadams]

My guess would be upon filing the BK they filed a claim against insurance/guarantor for the balance of the loan. So as far as they are concerned, it's paid in full.

But likely the guarantor and/or their collection agency would now be collecting.

Hopefully you got lucky due to the non-accredited status of the loan.

[backtoschool]

Even non-accredited schools can have private loans from Sallie Mae, and those private loans are not dischargeable.

If the school closed, the loan may be forgiven in certain circumstances.

I agree with jadams that the "paid in full" just means that the loan was transferred to a collection agency and that you still owe the loan most likely.

[emmacat]

I'm confused

Does anyone know how I can find out for sure who holds the loan and if in fact I owe money to Sallie Mae? Would this show up on my credit report? I just checked my credit report and it says:

Sallie Mae
Account status: closed
Payment status: Debt included in or discharged through bankruptcy chapter 7, 11, or 12."
Comments: student loan payment deferred

It says the same thing for my Wells Fargo student loan, which is from the same un-accredited school. However, Wells is sending threatening letters. Are they allowed to do this if my credit report says discharged? Are they just trying to squeeze money out of me until they can't anymore?

[HHM]

First, you owe the money...there is NO QUESTION about that.

That entry is far different than a "paid in full" entry. Next time, perhaps you should post the correct facts in your initial question. That, included in bankruptcy, entry is the typical, and correct, entry for the loan.

I am not sure how many different or direct ways this can be said.

STUDENT LOANS ARE NOT DISCHARGED in bankruptcy, unless you filed an adversary proceeding in bankruptcy court. There is NO ACCIDENTAL discharge of student loans. Your credit report is not a legal document that reflects the "legal" status of a debt, it is a reporting document.

[Amy26]

Yes, as HHM says, and Wells Fargo has every right to be sending you nasty letters... you should find out how to get current with them so you don't get into any trouble.

[Warcraftin]

Try http://www.nslds.ed.gov/nslds_SA/ to look up your student loans.

[SPalin]

Try http://www.nslds.ed.gov/nslds_SA/ to look up your student loans.

I filed Ch 7 on Nov 3 and just checked my SL status with the link above and my loan is showing a forbearance as Nov 11. That was why they didn't take the December payment of of my checking account. Hopefully Sallie Mae will not be selling my loan, at least the NSLDS link showed it is still being serviced by Sallie Mae, but we will see.

[Smalls]

My SM loans also say "Settled for less than amount owed"

My discharge was 8 months ago and I have not heard from them or a CA since.

[backtoschool]

Student loans often report incorrectly on credit reports. You are still financially liable for the loans, and eventually they will transfer to another creditor with a 25% collection fee added onto them.

[Smalls]

Student loans often report incorrectly on credit reports. You are still financially liable for the loans, and eventually they will transfer to another creditor with a 25% collection fee added onto them.

Well what am I supposed to do? Wait around until the CA calls me? That's all I can do!

[SPalin]

I would contact the OC of the loan and find out where you send in your payment. I plan on doing this once I'm discharged.

[Coldplay]

Sallie Mae

I have two loans with Sallie Mae. Can I not include them in the Chapter 7 petition ? What's the point in putting them on there if they can't be discharged ? I am currently up to date on my payments with them and I use their online site to make payments. Will I continue to be able to make payments after I file?

Thank you in advance.

[Amy26]

You have to list them on your petition yes, but they are not dischargable. When you file, they will go into bankruptcy deferrment and you will not be able to use your account online. After your bankruptcy is over, it will take them a month or more to get their acts together and give you back your account access and start your payments up again.