Private Student Loans

[jersin000]

Just a question-

I have a private Student Loan that was co-signed by my parents. The loan company was notified of the bankruptcy, but was not included in the plan. My attorney said to just keep paying it outside the plan. I logged on to keep making payments but all my loan info was gone and it just said loan was in BK, not giving me the option to pay. I called and they said the only payment acceptable for the loan would have to be through the mail. My parents have never recieved notification from the loan company, nor have they recieved any statements for this loan. Can the loan company require payment from my parents since they are co-signers, or since it is in BK, can they not ask them for payment?

[rrockinggramma]

once you file chapter 13 the auto stay goes into place for you and also a co debtor stay goes into place as well. So by law they cannot contact any co signers of the debts you placed in bk and they will be protected until your discharge.

[sassiebaz]

Yeah, I wondered why I haven't been contacted by Sallie Mae. So, I technically dont need to pay my loans for 3 years? My gawd....my interest is gonna kill me!

[treehugger1]

Depending on the interest rate, yep. With my huge amount of student loans at large interest rates, I would have exited a BK 13 in no better shape than I entered. I posted somewhere on this forum that this is a lion still waiting to roar.

[sassiebaz]

Although I am wiping out our credit card debt, and large car loan....I will basically be trading that old debt for new student loan debt. I will be taking on another $10K in student loans over the next two years. Im starting nursing school in 2010. But, in the end, I believe it'll be worth as I'll double my income when Im done.

[rrockinggramma]

the rules are changing with student loans especially the private ones as the government is taking away the right to have them. I believe the proposal is that all loans go through the government now. (not sure if this is law yet or not) but if that is the case, the government might not charge the outlandish interest rates that sallie mae does now. This has been a quiet government take over and not much in the news.

[sassiebaz]

I wonder if that means I will ever be able to lower my 14.65% interest at some point in the future?

[jersin000]

So in other words..... If I can afford it, I should just pay it anyway. It will be paid off before my plan is done anyway.

[jkb]

I've been making payments on my loans as well. Sallie Mae says they can't give me any statments in regards to payments. How can I verify that the money I'm paying is actually going to the loan I've stated that it should go to?

[lrprn]

I've been making payments on my loans as well. Sallie Mae says they can't give me any statments in regards to payments. How can I verify that the money I'm paying is actually going to the loan I've stated that it should go to?

Sadly, Sallie Mae is truly the worst private student loan lender there is. The horrible stories about them are legendary - see http://www.ripoffreport.com/searchre...mit2=Search%21

Unfortunately even though there is nothing about being in bankruptcy or deferment that prevents them sending you a printout of your payments and balance, there isn't much you can do to force them to do it.

Try asking your lawyer to send Sallie Mae a letter on their office letterhead demanding a printout listing each payment made since (X) date, and an accounting of the loan balance after each payment. It's really the only way to find out if your payments are being recorded properly and the loan balance is actually going down during your 13. Sorry - I wish there was something more you can do to force Sallie Mae to do the right thing

[jersin000]

Thankfully I can still view my loan details when I log in to my account, so I know my payments are being posted properly.