I thought student loans were SECURED debt?

[MajorMike]

Are they unsecured but just have to be paid?

WELLS FARGO EDUCATION FINANCIAL SERVICES
PO BOX 5185
Sioux Falls, SD 57117 Claim No: 1
Filed: 10/09/2007
Entered: 10/09/2007 Status:
Filed by: CR
Entered by: Keller, Peggy
Modified:
Unsecured claimed: $6779.29
Total claimed: $6779.29

[MajorMike]

Nevermind. I think I goofed up. They are unsecured Govt debts but they have to be paid....I believe that's correct? PRIORITY DEBTS?

[JollyGG]

Actually they are unsecured and are not considered priority debt.

They are however non-dischargable.

This unique situation often makes them a problem in chapter 13 bnkruptcies. You end up in a situation where you can't discharge them but you can't pay them either.

It seems that different trustee's are handling them slightly differently. Your lawyers would know what your trustee is doing.

Some aren't allowing them in your budget, and are treating them as any other unsecured causing debtors to owe alot in interest at the end of their five years. Others are allowing them to be part of your budget. Others are paying them as a priority debt. Some allow them if they can be paid in full, but not if they can't.

So as you can see it is very confusing. However, your lawyers should be able to tell you what to expect.

[MajorMike]

thank you jolly, I just emailed him now. I'd like to start paying on them even though I'm still in school until 2010.

[chpxiii]

Some aren't allowing them in your budget, and are treating them as any other unsecured causing debtors to owe alot in interest at the end of their five years.

That's what's happening with me. It's annoying. Because even though I paid off my chpt. 13 early, I'll STILL be in debt.

[EveryDayAdam]

That's what's happening with me. It's annoying. Because even though I paid off my chpt. 13 early, I'll STILL be in debt.

On the bright side, as long as you are on time with your payments, you're already building a good new credit history already