Student Loan Forgiveness🎉

[imtryingtho]

Will Biden’s student loan forgiveness/cancellation apply to loans in a Chapter 13? What are we assuming? 🤔 My husband and I both received Pell Grants so if they apply, it would wipe out his loan and make a substantial dent on mine. If nothing else, the loan we still pay on that is in my dad’s name will get $10k knocked off it!

Just curious on everyone’s thoughts, emotions, concerns

[justbroke]

The details are not yet available. There was some concern that the Parent Plus loans were not mentioned in the press releases by the White House or the Department of Education. Some follow-up tends to leave credence to the fact that they intend to allow Parent Plus loans to be included in this debt relief.

However, you prevent a fact-specific case where you may have student loans and Parent Plus loans (outside Pell)? That would be interesting.

[Carmella]

More information will be released. I did "hear" that the Parent Plus loans are not included. My daughter's loan will be wiped out as she has just over $8,000 remaining.

[Barbisi]

Carmella, big congrats to your daughter! As the years go by, she will definitely be grateful not to have that monthly debt.
Both Zombie13 and I were able to pay off our education loans in full a while before the BK13 started, so we never had to fret as many have on these forums. Struggling to just pay the interest while being in bankruptcy forbearance or worse, having to let the interest continue to accrue and increase the payoff amount by thousands of dollars is patently unfair and could set one up for a repeat BK 7/13.
Hopefully, this will help many past and current BK13 debtors.

[AnxiousUserX]

I just made a post in the wrong section about this, I believe, oops! I’m wondering the same thing. I know we’re just learning very little about this, but I’m waiting on my confirmation hearing for next month and wondering if I’ll be allowed to take part in this forgiveness, if I qualify, while in chapter 13. I honestly don’t see why we wouldn’t be able to? I feel like this wouldn’t be up to the trustee but an exemption or allowance of some sort by the feds.

[Clay3007]

As much as I hate that people are mad about this subject I have felt a second weight lifted off my shoulders since I’m about $30k in college debt and my wife is about $6k and I never felt it was going to be paid off. Im in the boat for the $20k forgiveness since I did get pell grants and thank god the president said it was going to be non taxable

[Carmella]

As much as I hate that people are mad about this subject I have felt a second weight lifted off my shoulders since I’m about $30k in college debt and my wife is about $6k and I never felt it was going to be paid off. Im in the boat for the $20k forgiveness since I did get pell grants and thank god the president said it was going to be non taxable

I agree I don't know if it's the best thing in the overall scheme of the nation's debt, but it is what it is and it's happening. Just like the stimulus checks and the checks people are getting for their kids. Personally, I think the college costs are out of control since they know they can charge more since everyone has loans. I would like to see that addressed. But that's another issue.

[eap82]

I have been on the phone with my servicer, ECMC, and they just don't have enough info yet about us in Chapter 13. After much discussion they explained to me why I didn't get COVID interest pause and are not hopeful my loans are included. I have an old loan called FFEL Loans which are government backed loans held by ECMC, a private servicer, who bought my loans when I went into bankruptcy. That's how they did things prior 2010 when that program ended and they started servicing loans directly. The direct loans are the ones that have benefited from the CARES act and are definitely included in this. Ironically, if my loans were in default they would have had interest paused but mine are not as I always paid them. I could have, prior to my BK, consolidated my loans into a direct loan but didn't know this was coming or what kind of difference there were in these loans. What they do know so far is your loans have to had been originated prior to July 1, 2022 so even if I do consolidation now it's not eligible. This is all info from my servicer but they genuinely suck so who knows if it's right.

If I qualify, I will get $20,000. They said they should know more soon. I'm really hopeful because while I've been in bankruptcy, despite my trustee making payments to my loans, I am still incurring interest more than the payment amounts and now am accumulating debt. I owe more now that I did when I started

Frankly this just sucks. I have always paid my loans and I genuinely in my heart did not understand the burden I was taking on when I was 18 years old going to a private school. Having these loans shoved in my face as a way to pay for school when I had to do it myself because my parents bailed really was overwhelming. I do believe the student loan business is predatory lending. They pushed me telling me if I don't take out these loans then I have to leave a program I already started because I couldn't afford college. Looking back with some life experience, I might have made a different decision but I can't have it back. Yes I took out these loans and agreed to pay them but honestly, no teenager/young adult should be given access to incurring debt like that. I just don't believe they all can make healthy decisions, it's all so overwhelming and people keep saying you have to go to college to be successful. All I can do is help my kids make better choices. My plan does include payments into the Florida PrePaid College Savings program so hopefully my kids have more opportunities to finish college debt free than I did. That or I am absolutely pro going in to a trade and getting skill without going to college or going to the military. I know so many people who didn't go to college that are successful, productive and happy. I wish I had been given that guidance.

I hope for you that your loans are forgiven and you get the relief you need.

[NoMoney30]

I am very curious about this as well. I have FFELP Consolidation loans which are being paid in my chapter 13 right now. I think I read that FFEL loans aren't included but I'm not sure? I'm annoyed because they consolidated my loans on their own and they are still technically federal loans but they are being serviced by ASCENDIUM EDUCATION SOLUTIONS, INC. I guess Navient sold them my loans when I went into the chapter 13 3 years ago.

I'm lucky I have fixed interest rates at 5% and I don't think I have interest accruing on them. But its like 50k and my BK has already paid them 25k in my plan which is pretty nice but knocking 10k off of it would probably pay it off completely by the end of my chapter 13.

[eap82]

I am very curious about this as well. I have FFELP Consolidation loans which are being paid in my chapter 13 right now. I think I read that FFEL loans aren't included but I'm not sure? I'm annoyed because they consolidated my loans on their own and they are still technically federal loans but they are being serviced by ASCENDIUM EDUCATION SOLUTIONS, INC. I guess Navient sold them my loans when I went into the chapter 13 3 years ago.

I'm lucky I have fixed interest rates at 5% and I don't think I have interest accruing on them. But its like 50k and my BK has already paid them 25k in my plan which is pretty nice but knocking 10k off of it would probably pay it off completely by the end of my chapter 13.

if you google ffel loans forgiveness an article by CNBC on 8/29/22 sums it up perfectly. With my many conversations with my servicer and student aid representatives at the dept of Ed what it comes down to is consolidate them to direct loans asap. That of course requires trustee approval, I emailed my lawyer and she feels I will get approval. I’m to start the process of finding out if my loans can be consolidated, doing that now. The article says that even without consolidating, there is hope and the government is aware of our problem. So as I understand it, even in a chapter 13 as long as you have direct loans you will get forgiveness.

[imtryingtho]

I have been on the phone with my servicer, ECMC, and they just don't have enough info yet about us in Chapter 13. After much discussion they explained to me why I didn't get COVID interest pause and are not hopeful my loans are included. I have an old loan called FFEL Loans which are government backed loans held by ECMC, a private servicer, who bought my loans when I went into bankruptcy. That's how they did things prior 2010 when that program ended and they started servicing loans directly. The direct loans are the ones that have benefited from the CARES act and are definitely included in this. Ironically, if my loans were in default they would have had interest paused but mine are not as I always paid them. I could have, prior to my BK, consolidated my loans into a direct loan but didn't know this was coming or what kind of difference there were in these loans. What they do know so far is your loans have to had been originated prior to July 1, 2022 so even if I do consolidation now it's not eligible. This is all info from my servicer but they genuinely suck so who knows if it's right.

If I qualify, I will get $20,000. They said they should know more soon. I'm really hopeful because while I've been in bankruptcy, despite my trustee making payments to my loans, I am still incurring interest more than the payment amounts and now am accumulating debt. I owe more now that I did when I started

Frankly this just sucks. I have always paid my loans and I genuinely in my heart did not understand the burden I was taking on when I was 18 years old going to a private school. Having these loans shoved in my face as a way to pay for school when I had to do it myself because my parents bailed really was overwhelming. I do believe the student loan business is predatory lending. They pushed me telling me if I don't take out these loans then I have to leave a program I already started because I couldn't afford college. Looking back with some life experience, I might have made a different decision but I can't have it back. Yes I took out these loans and agreed to pay them but honestly, no teenager/young adult should be given access to incurring debt like that. I just don't believe they all can make healthy decisions, it's all so overwhelming and people keep saying you have to go to college to be successful. All I can do is help my kids make better choices. My plan does include payments into the Florida PrePaid College Savings program so hopefully my kids have more opportunities to finish college debt free than I did. That or I am absolutely pro going in to a trade and getting skill without going to college or going to the military. I know so many people who didn't go to college that are successful, productive and happy. I wish I had been given that guidance.

I hope for you that your loans are forgiven and you get the relief you need.

I feel like a lot of people who are angry don’t understand that for many of us, this won’t even wipe out the interest we’ve accrued so we ARE still paying back the principal, we’re still paying back loans regardless. In many ways, this plan was too much and not enough at the same time. I took out stupid amounts of debt because I was terrified to work too much and manage a full time course load. I was a nanny throughout college which didn’t even keep the electricity on at times. I busted my butt to graduate in 4 years because I already felt the crippling amounts of debt looming and I couldn’t imagine taking on another loan. I don’t know how anyone is expected to work full time and take a full course load, that’s how students end up failing out of classes and then needing to go for 5-6 years, thereby needing even more loans! And do advisors care about your work or commuting schedule when trying to fit you into full classes? Not a bit.

In my situation, I’m probably sitting at 80k in student debt if you include my father’s loan and I’m a stay at home mom now. 🤡 I wouldn’t give up my time in college for anything as it shaped who I am now, but I would’ve made a lot of different decisions if I could go back. One of my loans was included in the 13 because it was private and they can argue it was used for private expenses. My federal loans are at 0 interest for the time being (not that it does a damn thing given the interest that had already accrued). My father’s parent loan is also at 0 interest but the trustee isn’t involved in that one and we have to pay it, as that was an agreement with my parents when I attended college.

I’m happy anytime someone else gets relief financially. I mean I could be bitter that my loans have had a lot more time to accrue interest than more recent graduates and that the forgiveness won’t wipe my loans out like it will for many people. But I’m genuinely happy for so many people. The government spends a crap ton of money on things that don’t benefit me, this needed to be done. People are drowning in plain sight.

[imtryingtho]

I am very curious about this as well. I have FFELP Consolidation loans which are being paid in my chapter 13 right now. I think I read that FFEL loans aren't included but I'm not sure? I'm annoyed because they consolidated my loans on their own and they are still technically federal loans but they are being serviced by ASCENDIUM EDUCATION SOLUTIONS, INC. I guess Navient sold them my loans when I went into the chapter 13 3 years ago.

I'm lucky I have fixed interest rates at 5% and I don't think I have interest accruing on them. But its like 50k and my BK has already paid them 25k in my plan which is pretty nice but knocking 10k off of it would probably pay it off completely by the end of my chapter 13.

That would be awesome to have them paid off! We were assuming to have an $800 student loan payment once we got out of the 13, so the fact that the balance might actually have a dent taken out of it is so nice. It puts us in such a better position when we finish the 13. We’re 1/3 of the way through, but who’s counting 👀 We are taking our boys to Disney World as soon as we are out and can cash in some stock we were allowed to keep!