sallie mae and claim for 13

[IamOld]

Hello everyone - does anyone have experience with Sallie Mae/fed student loans in Ch 13 - proposed payout to unsecureds is about 10% (after IRS :-)


Do you think they will put in a claim...so far I've got only four of...sigh...about 20 creditors that have put in claim - end date for claims is early Aug...

[InOverHead]

Please correct me if im wrong, anyone.

I was under the impression student loans were treated like taxes and were secured debts. So if that's the case i believe you would be paying them back 100%

[IamOld]

Please correct me if im wrong, anyone.

I was under the impression student loans were treated like taxes and were secured debts. So if that's the case i believe you would be paying them back 100%

For a reason or two I wish they were secured debts - but I believe that they are simply undischarged unsecured...

[lrprn]

@IAmOld, you are correct. Due to one of the most bone-headed, stupid parts of the bk law for Ch 13ers, student loans are indeed considered undischargeable unsecured loans.

Wouldn't be so bad, but by law the SL lender is allowed to continue to charge interest on the loan for the entire length of a Ch 13 plan - the only unsecured lender who is allowed to do so. The private SL lenders really greased the palms of Congress to get this put into the 2005 bk law and get it passed.

Compared to Ch 7 filers who only have to wait 90-120 DAYS to discharge and start to pay their loans again, a Ch 13 filer has to wait 36-60 MONTHS before discharge to start paying off the student loans again. If they are lucky, their trustee is one who allows the minimum student loan payment to be included on the Means Test as a legitimate expense. For everyone else, they are really screwed. Can't pay even the minimum loan payment (unless they take it out of their meager cash on hand every month) while the interest pushes the total amount owed up and up until discharge finally comes. It's really beyond unfair.

[IamOld]

THANKS!!!!!!!!!!!!!!!!!!!!! Yes, I am a permanent indentured servant of Sallie Mae. Of course when that poop hits the fan - massive student loan defaults...we'll see if the gov't will do anything...

INTERESTINGLY - my smaller Fed loans (couldn't re-consolidate SLM back into Fed) shows the acct as SUSPENDED - I can still log on, see it, just under payment due it says suspended. I could make a regular payment though if I wanted.

I think that's a much more sensible thing than just pulling website access like SLM had done.

My current payment is about $600/mo (that's already the lowest I can get it...) so I don't exactly mind not having to pay for 5 years, as after 25 total, the debt is forgiven....we'll worry about that...then!

Yep, SLM owns Congress...hook line and sinker.

By the way, I don't think my student loans are included as an expense...I don't THINK, but I think for Ch 7 they may be...I don't honestly know.

So therefore I wonder if they'll even bother to put in a claim...my unsecureds are supposed to be paid at around 18%....

@IAmOld, you are correct. Due to one of the most bone-headed, stupid parts of the bk law for Ch 13ers, student loans are indeed considered undischargeable unsecured loans.

Wouldn't be so bad, but by law the SL lender is allowed to continue to charge interest on the loan for the entire length of a Ch 13 plan - the only unsecured lender who is allowed to do so. The private SL lenders really greased the palms of Congress to get this put into the 2005 bk law and get it passed.

Compared to Ch 7 filers who only have to wait 90-120 DAYS to discharge and start to pay their loans again, a Ch 13 filer has to wait 36-60 MONTHS before discharge to start paying off the student loans again. If they are lucky, their trustee is one who allows the minimum student loan payment to be included on the Means Test as a legitimate expense. For everyone else, they are really screwed. Can't pay even the minimum loan payment (unless they take it out of their meager cash on hand every month) while the interest pushes the total amount owed up and up until discharge finally comes. It's really beyond unfair.