student loan question

[pt721]

we will soon be filing chapter 13 and have student loan debt that is currently in deferment and not delinquent. We do not want to include this debt with our repayment plan as it can be deferred for awhile yet. Will this be allowable? thanks for any info

[lrprn]

Whether your student loan payment can be included in your expenses depends on the custom in your local court. Some trustees allow it, some don't. Talk with your lawyer to see what your local court allows.

The advantage to including your student loan payment as an expense is that it reduces your disposable income by that amount which typically reduces your payment as well .

Student loans are unique in Ch 13 because although they are unsecured loans, the lender is still allowed to charge interest for the length of your 13. Another reason most Ch 13 filers like being able to include their monthly SL payment in their expenses (even if the amount just covers the monthly interest charge) because that's less $$ you have to pay when you emerge from your successful Ch 13 after three or five long years. Your SL lender may receive the same payback % that all your other non-secureds as long as they file a claim as well - this further reduces what you owe when your plan is discharged.

Talk with your lawyer about what your local court allows around student loan expenses and whether including the monthly payment (even if it just covers the interest) is a possibility for you or not.

The one thing you don't have a choice about - you must list the SL lender(s) on your forms as a creditor when your lawyer files your 13. All debts must be included - no exceptions.