Question Will my bankruptcy affect my student loan IBR plan?

[Seren12]

I realized this was something I had never thought to ask - I was told you can't discharge your student loans but I never thought to ask if it would affect my IBR plan or progress.

I'm on REPAYE through Nelnet for some dept of education loans and I have about 10 years into the 20 or 25 or whatever it is for dismissal of remaining balance. Is this going to screw that up at all that would be devastating.

I noticed I no longer can log in to Nelnet when I do it says "due to the status of your account you must call this number for assistance."

I'm quite worried, please let me know thank you.

[justbroke]

Yes. Government student loans automatically go into forbearance. When the bankruptcy concludes, is discharged, the student loan status should go back to whatever status in which it was prior to filing (REPAYE, IBR, DEFERRED, IN-SCHOOL). That status will be subject to current conditions when you come out from the bankruptcy-driven FORBEARANCE.

if you're in a Chapter 7, you'll need to deal with the consequences after the discharge. I don't remember what I had to do to regain access to NELNET. NELNET is just honoring the automatic stay and trying not to cause any issues.

In the end, the bankruptcy just stays the collection of the student loan but doesn't generally affect the loan. Interest will continue to accrue. You should be placed back into REPAYE status after a dismissal or discharge is received by NELNET.