Student Loans -- To Pay, or Not to Pay

[159515951]

Hi everyone,

I am currently in an active Chapter 13, and have student loans that are to be paid "outside of the plan" because the payback period exceeded the 60-month plan. In the meantime, my student loans were sold to another servicer, and that servicer is not requiring payment of the loan while I am in Chapter 13. In fact, they make it difficult to even figure out how to pay them while in a 13. But that's ok, because NOT paying the loan on a monthly basis is very helpful right now.

The question: Am I in violation of the plan if I choose to let the loans remain in forbearance until I've successfully completed my Chapter 13? Or...can I get myself into trouble by not paying the student loans for now?

Thanks!

[dmc-2008]

It is my understanding that some loans will let you pay but it goes in a trust until discharge and incurs interest, others like mine let you pay and apply it to principal, but i could defer! I dont want to stop paying it! I am taking $$ from grocery bug and other places to pay it! I want out of this whole mess in five years, i dont want that waiting for me! Maybe you can defer but start a savings and pay what you can to it then pay it down at discharge? Others here are so much better at this than me, just wanted to add 2 cents.

[LadyInTheRed]

The question: Am I in violation of the plan if I choose to let the loans remain in forbearance until I've successfully completed my Chapter 13? Or...can I get myself into trouble by not paying the student loans for now?

Maybe. This is one of those questions that you really need to ask your attorney. It may be that if you don't make the student loan payments, that amount would have to go to the trustee to pay unsecured creditors.

I agree with dmc-2008. Might as well get those loans paid down as soon as you can.