Federal student loan claims

[jnjw]

I was just wondering if anyone would know why a federal student loan lender would file a claim and list it as unsecured nonpriority? It's my understanding they are unsecured priority?

I checked Pacer last night and found that Sallie Mae filed claims for both my federal loan and federal loans of my husband's, but on the form they marked Unsecured Nonpriority Claim.

Could it be because our atty listed our federal student loans to be paid outside the plan? I'm thinking that might be the reason, but just wanted to see if anyone knew for sure.

[kmb]

I believe it's filed that way because it isn't secured by anything and goes into the general pot. I have several federal and private student loans, and they are all listed as unsecured and non-priority. Since they aren't dischargeable, and I'm only paying 25% into my plan, I know I'm going to have to pick up payments once I'm finished with my plan. Even though they aren't dischargeable, I don't think they hold the same status as income taxes do.

[JollyGG]

Student loans are strange. The claim is correct. Even though they are non dischargable they are unsecured and nonpriority. So when they file a claim they get what all the other unsecured creditors get. So if you pay unsecured at 5%, then your student loan will get paid at 5%. This could be to your advantage if you are making montly payments outside the plan since that means your student loans are double dipping to a certain degree and you will get them paid off slightly faster. However, if you can't work paying them outside the plan this does hurt you quite a bit as interest and fees continue to acrue.