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    Student Loan Interest

    Since our children are not employed we are paying the interest on their student loans while they are in college. Can you list student loan interest (not the loan since those payments are deferred-just interest)as an expense on schedule J?

    #2
    Are you asking if you can pay for the interest on someone elses debt as an expense in your BK?

    Are you in a 100% plan? If not, then no. The fact these are student loans and the fact that they are for your (adult) children will not matter. Unless you are paying back your creditors in full, then by suggesting to the trustee that you pay the interest on this debt you are essentially paying a creditor that you have no obligation to over the creditors that you do have an obligation to.

    Even if these were your own student loans, most districts (although this varies) seem to simply treat student loans as general unsecured creditors and they get the same % as everyone else. If that covers the interest payment, great. If not, then the interest accumulates over the lenght of your BK.

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