Student loans

[sassiebaz]

I just got a student loan in the mail. I didn't even know I was getting one. Yes, I did the paperwork, but was hoping to not take out the loan and instead get some grants. Didn't qualify though. So, I haven't cashed the check and I'm wondering what the trustee will have to say about this. We aren't filing for several months. I'm not planning on blowing this either! Can I get some advice on this....thanks!!!

[krielly]

Are you definitely going to school? If so, I would think you could just use it for that purpose. After all, school loans are not dischargeable in your BK. You will NOT be able to get rid of any of the student loan debt by filing.

Also, you have to keep in mind that your loan will probably go into forebearance if you file 13. Your probably won't be allowed to make any payments on it, but unfortunately it will continue to accrue interest in the meantime.

If you are not going to school after all, simply return the check to the lender.

[EricaCallaha]

Well if you intend to go to school, ask your attorney what you should do with the check. If you cash it and use it for the school expenses for which it is intended, the loan will not come due until you graduate. So you won't really have to worry about the forbearance talked about above. But just in case, ask your lawyer what you should do. If you don't have one...get one.

Good luck.

[sassiebaz]

I'm not asking the question in regard to my BK exactly. I know the whole forbearance thing and not being dischargeable. This is not my first student loan, and I've been through a BK before. My question is pertaining to spending the money or not. It is around $4K and obviously I cannot keep it in savings or anything. But, what will the trustee have to say about this? I may use part of it for a down payment on a vehicle, and of course pay my tuition. But since it's not considered income, what am I supposed to do?