Federal Student Loans

[glc4123]

yes, i have a question about federal student loans maybe someone can help. i co-signed for several federal student loans and the person i signed for can't pay. and im also in a situation i can't pay the amount also. the are deliquent about 5 months and are sallie mae loans. does anyone know what the procedure, when they will default after how many months does this occur?Also when the default will the guarrantor take me to court or will a collection agency get involved? im getting close to retirement and can they take some of my ss money? Im also ready to file chapter 7 bankruptcy in the very near future.

thanks

[HHM]

Official Default = 270 days from last payment
If they are already with SM, they will probably stay there for the time being, but could be turned over to Dept of Education.
They "could" take you to court, but there is no need, they can intercept tax refunds and garnish social security without court order.
BK 7 won't help with the student loan debt.
The direct borrower needs to do something to help you...either get on a payment plan, file chapter 13 BK, re-enroll in school, something to prevent them from coming after you.

Basically, this is why you NEVER cosign for loans, especially student loans.

[JvilleGarden]

Our case has been discharged, and we are getting things back in order. We originally filed a CH 13, then converted to a CH 7, which was discharged on 3/11/11 (WOOHOO!!). I go to my Federal Loan Lender, and the loans show Paid In Full By Claim, except for 2 of them, totalling about $5,000. These are all Stafford Student Loans, and we haven't paid anything on them since we filed the BK. Any ideas what is going on with them?

[HHM]

They will eventually pop into back into collection. Make no mistake, don't get lulled into a false sense of security by the slow moving bureaucracy, those are still live debts and are accruing interest. Find a way to pay.