What happens to Student Loans?

[bam531]

Hi everyone!! When we first filed 3 years ago I think I remember the trustee saying that student loans would not be discharged and they would be on going after we were discharged. Could I be mistaken? We are in 100% payback plan and live in Tennessee. According to trustee 13 website and the balances that are listed there..we only have 7 months left without adding in student loans or 10 months left by adding them in. Of course by there calculations it says we have 19 months left..but we were told by the trustee that it wouldn't take us 5 years. Any suggestions? Thank you for all of your help..I love this website!! It has pulled me out of many sleepless nights of worrying about what to do..Thank you all!!

[HHM]

It really depends on what your chapter 13 plan says. The WORST place for understanding your plan is a website like 13datacenter because it is not designed with the consumer in mind.

But, if student loans are not paid in the plan (which they usually aren't), then you will emerge from your chapter 13 and need to restart making payments.

[bam531]

It really depends on what your chapter 13 plan says. The WORST place for understanding your plan is a website like 13datacenter because it is not designed with the consumer in mind.

Is there a better website we should look at about our plan? All the trustee told us was Trustee 13.com. See where alot of people use Pacer.. we have never been on there.. is that something we need to do?
.
But, if student loans are not paid in the plan (which they usually aren't), then you will emerge from your chapter 13 and need to restart making payments.

Student loans are being paid through our plan..I will have to get paperwork out and see what it says. Thanks!!

[tomorrowman]

I don't have an answer - but wanted to share what happened to me so you can be on the lookout for it, although hopefully my situation is a complete fluke. My student loans were *supposed* to be paid through the plan, but for whatever reason - the company handling my student loans never filed a claim, so the trustee never made any payments. Per my attorney's instructions, I ignored the bills I got from the student loan company - until I opened one up that said I was about to default, and incur an 18% penalty that would be applied back on top of my principal. Attorney told me to work with trustee to get it fixed - trustee told me that it's not their job - that my atty would have to help... and he hasn't returned my calls in two weeks... so, just saying - be careful and watch out for yourself, because this is one debt that comes with all sorts of strings attached and will live well beyond the BK if it's not handled during.

[IamOld]

I don't have an answer - but wanted to share what happened to me so you can be on the lookout for it, although hopefully my situation is a complete fluke. My student loans were *supposed* to be paid through the plan, but for whatever reason - the company handling my student loans never filed a claim, so the trustee never made any payments. Per my attorney's instructions, I ignored the bills I got from the student loan company - until I opened one up that said I was about to default, and incur an 18% penalty that would be applied back on top of my principal. Attorney told me to work with trustee to get it fixed - trustee told me that it's not their job - that my atty would have to help... and he hasn't returned my calls in two weeks... so, just saying - be careful and watch out for yourself, because this is one debt that comes with all sorts of strings attached and will live well beyond the BK if it's not handled during.

Thank you for the warning tomorrowman - my slave-collar - I mean student loan to Sallie Mae is huge - but managable - I understood that I didn't have to put that thru the 13 plan because the student loan is for WAAAAY longer than 60 months. From what I understood, while one is in the 13 the student loan is on "hold," but one can make payments...depending on the budget, I would want to continue to make SL payments (or put money in some savings acct) if I can so it's not a suprise after the 13 (and God knows I'll know more in a day or two from lawyer - I hope)...so am I off the mark here?

[dlinid]

I pay my student loan outside my plan. It is stated our plan that the loans are paid outside. I spoke with the loan people and we do not HAVE to make the payments, but the interest is ongoing, and you can come out of your plan with big interest tacked on to the back of your student loans. Might be a good idea to find out what your interest is and pay that towards your student loans. If you itemize you can take it off your taxes!

[IamOld]

I pay my student loan outside my plan. It is stated our plan that the loans are paid outside. I spoke with the loan people and we do not HAVE to make the payments, but the interest is ongoing, and you can come out of your plan with big interest tacked on to the back of your student loans. Might be a good idea to find out what your interest is and pay that towards your student loans. If you itemize you can take it off your taxes!

THANKS!!!!!! That would be my intention thank you again dlinid. Int rate is good under 4%. Makes the slave collar more comfortable :-)

[kornellred]

No matter how you slice it, student loans are non-dischargeable debt. If you are paying on student loans in the Chapter 13 plan, the balance upon completion of the plan will still be payable. There is such a thing as an extreme hardship discharge of student loan debt, but that is another matter entirely.

[cereber0s]

Mine are weird. Because mine are paid via the plan, but it's not the full monthly payment. I didn't calculate, but it's like 75% - 80% of the full payment, based on what 13datacenter says is being paid vs. what my payment is (or was before I filed). I would rather pay more and emerge from Ch. 13 with a zero balance SL.

[IamOld]

I pay my student loan outside my plan. It is stated our plan that the loans are paid outside. I spoke with the loan people and we do not HAVE to make the payments, but the interest is ongoing, and you can come out of your plan with big interest tacked on to the back of your student loans. Might be a good idea to find out what your interest is and pay that towards your student loans. If you itemize you can take it off your taxes!

True re taxes!!!!!!!!! Mine were to have come out of a "layoff" deferment soon...oh well - they'll get some $$...

[MOMof3]

Mine are getting paid at the same percentage as all my other unsecured debt.

[IamOld]

Mine are getting paid at the same percentage as all my other unsecured debt.

Thank you MOMof3 - out of curiosity - was your plan approved or did the Trustee object to the first proposal...?

[lrprn]

Like MOMof3, our Parent Plus student loans are being paid by our trustee at the same % rate as all our other unsecureds. Our first plan had two trustee objections and one creditor objection, but the student loans....never an issue for our trustee.

[IamOld]

Thank you!

Like MOMof3, our Parent Plus student loans are being paid by our trustee at the same % rate as all our other unsecureds. Our first plan had two trustee objections and one creditor objection, but the student loans....never an issue for our trustee.