Student Loan Questions

[lostinnola]

Good morning everyone. I am on my final year of a 5 year chapter 13 program. I have some specific questions on student loans. For reference, I am paying my consolidated federal student loans through my payment plan.

1. Are my student loans continuing to accrue interest the last 5 years (that is actually a lot of money).

2. If yes to question 1, does the student loan interest temporarily stop with the CARES act or did it continue for me since I am in a chapter 13 payment plan?

3. When I make my last chapter 13 payment, when will I start making payments again? I logged into my online account and the student loans do not exist in that account anymore. I am assuming that maybe they got moved into some type of bankruptcy department or something.

[justbroke]

1. Are my student loans continuing to accrue interest the last 5 years (that is actually a lot of money).

Yes. That's why we hope that the Trustee is at least paying "something" towards the student loans to cover at least the accruing interest. If not, then you will see the accrued interest. The loans are only in deferment, but the interest accrues just as it would if you were in an "in school" deferment period.

deferment2. If yes to question 1, does the student loan interest temporarily stop with the CARES act or did it continue for me since I am in a chapter 13 payment plan?[/QUOTE]The interest was stopped under a presidential executive order. I believe the executive order has postponed payments and interest from around April 1, 2020 and continuing through December 31, 2020 at this time.

1. When I make my last chapter 13 payment, when will I start making payments again? I logged into my online account and the student loans do not exist in that account anymore. I am assuming that maybe they got moved into some type of bankruptcy department or something.

I can't speak for your servicer but you should figure out how to start paying again. The loans will come out of deferment upon discharge.

[NoMoney30]

You will need to bug them. Student loans coming out of BK are usually a laborious process and stuff can get messed up. You'll want to make sure you stay on top of it with the servicer because you don't want to just be like well they haven't contacted me so guess I don't have to pay! Cause they will figure it out eventually and then you will get slapped with late fees etc ... I actually have no idea where some of my student loans are as they only submitted claims to my chapter 13 for half of what I owe. The rest is in limbo somewhere lol.