Student Loans on Forebearance

[simon2020]

I am currently on forebearance with my student loans. The forebearance ends in July of this year.

I am filing for BK 13 in March.

Are student loans automatically put on hold by the Trustee or do I have to pay them outside the plan?

I heard some trustees will tell the loan company to wait until I complete the plan -in the mean time student loans will not have any payments from me until my ch 13 ends in 5 years.

Does that sound correct?

[woeisme]

It varies by trustee. Mine allowed my student loan payments as part of my expenses, others don't. If you don't make payments during CH 13, the interest accrues, so you'll be in better shape coming out of your 13 if you are lucky enough to have a trustee that allows the payments to be considered when determining disposable income. I've heard horror stories of people who weren't allowed to make student loan payments, and come out of CH 13 owing huge amounts on the student loans that ballooned while in the 13.

[liz417]

We will be one of those "horror stories" with 70k in student loans...in our district, student loans are put on "hold" until you complete your BK (ours will be for 5 years)

[MOMof3]

Our attorney advised us that if we "could" pay we should. We've been in for 2 years now, and frankly I don't have the extra cash to send off to them. We will accrue interest the whole time on our 65K & only a portion of it will get paid in our unsecured pool. It really SUCKS. I'm not looking forward to what Sallie Mae thinks will be a reasonable payment when I get out of our 13.

[or30313]

Our attorney advised us that if we "could" pay we should. We've been in for 2 years now, and frankly I don't have the extra cash to send off to them. We will accrue interest the whole time on our 65K & only a portion of it will get paid in our unsecured pool. It really SUCKS. I'm not looking forward to what Sallie Mae thinks will be a reasonable payment when I get out of our 13.

Strange. It shows how different each trustee is around the country. We are not allowed to pay on our student loans at all until the plan is discharged. The loan servicer told us that their not even allowed to accept our payments.