student loans in 13

[brandv1]

So, I had my 341 on the 17th and all went well.

But, after the meeting the attorney talked to me and said that she was going to file a modification for me to pay my student loan outside of my plan (and lower my plan payment by that much) because my father co-signed that for me.

My irritation comes from this - I thought that student loans were treated as priority and would be paid in full and therefor not affect my father's credit. That is what I remember being told at first consult. Maybe I'm remembering incorrectly.

Now, I'm supposed to catch up on 3 months of student loan payments and try to keep within budget. How am I supposed to do that? I hate that _itch, Sallie Mae. She turned my 10 year payback into what is going on 15 years now (and I still owe 1/2 of what the original loan amount)Any suggestions on how to approach that with Sallie Mae? Of course I'll probably end up another month behind because I have to wait for my plan modification to go through before I start paying them anything.

The other part of this student loan question, is regarding my wife's student loans. We are still receiving bills for my wife's student loans. Shouldn't those have stopped by now?

Anybody else have any complications with student loans in 13?

[bcohen]

I am not sure that your attorney's idea is a good one. Although it is true that paying the student loans outside of the plan saves having to pay the trustee's commission on that money, it may also affect your co-borrower's protection under Chapter 13. Normally, when you include a debt in Chapter 13 bankruptcy, the creditor is prohibited from going after your co-signer. I don't know if that still applies if you pay the debt outside of the plan. Hopefully, one of the attorneys who posts here will answer that.

[momofthree]

Student loans are not considered priority debts. They are normally paid at the same rate as unsecured creditors, if they are paid at all. Sometimes they are simply put into deferment and sit and continue to accumulate more interest.

[pamkev]

My lawyer advised us to keep paying our students loans. We filed a chapter 7 not a 13 which makes a difference. When we filed we did get a deferment notice from them due to BK although we kept paying as did not want anymore interest to add up. This past week we just got a notice that deferment was over along with a bill that showed all our payments that we made while in bk.

Pam

[brandv1]

Well, ends up it is a moot point. Sallie Mae already filed their claim in the 13, so they won't do anything on the account.