Has anyone here successfully had a Student Loan Discharged?

[LilStevens]

Please Delete This Username/Profile

[technoreid1]

Is it a private student loan or a federal student loan?

thanks, rp

Has anyone here successfully had a Student Loan Discharged through an Adversary Proceeding?

I know it's rare (and one should consult with an atty) but if you did, how long did it take? BK Ch 7 non-assets seems to take two to three months.

I read, "Typically such a proceeding will take between six (6) and nine(9) months to be heard and involve a trial that lasts only an hour or two. "

*Though I haven't been able to work in over five years, will it hurt me to try and enter a vocation program for the disabled to work again? There's no guarantee I will be successful though. Should i wait until after six to nine months to do this?

[LilStevens]

Please Delete This Username/Profile

[technoreid1]

I have heard that student loans (at least private loans)
can be dismissed through your loan company but it is very very very difficult.

Basically you have to have get proof (letters) from doctors that you will never be able to work again in your life. And then you send these letters from your doctors to you student loan company....And then they take it from there.... I think...

I do not think you have to do it in bankruptcy.....
but i think it is possible, but I am not sure.

I owe 85k and feel horrible having this on my shoulders. I have been in defferement for years and it's running out now. I asked my lawyer if i could get it dismissed in bankruptcy and he said no. but I am not sure.

hope i helped a little,

r

Hi technoreid1 and thanks for responding, it is a consolidated loans through the Dept of Ed, Direct Loans (not private) for 26g, but I am below poverty line, have been mentally disabled and kept good faith by keeping deferments to keep it in good standing.

*I don't want to stay like this forever and hope to get stabilized for me psychiatric problems and enter vocational program to re-enter work force.
My neighbor told me don't do this until after the Adversary Proceeding or it will never get dismissed. I don't want to be working a low-paying job, because of my disability, and have this 26g over my head for the rest of my life, especially if my work efforts fail.

[LilStevens]

Please Delete This Username/Profile

[CindyLou]

LilStevens
I will give you the same advice that I gave my husband and his doctor and therapist agreed. Don't go out and change anything in your life until you get your medications stabilized. If you add and take away stressors during the time you are introducting new meds into the equations, then there is no way to know if it is the med or the stress causing the problem. So if you can delay the work study for now until you can get through this BK, see what you can do with you student loans, and try and get on a some type of steady and realiable medication regimine, then I would say a work program might be worth a try.

I do think you should go after trying to discharge those loans. But you will need the cooperation of a very understanding physician that knows a lot about you. I suggest that you either go out and find a new one and first explain your needs as far as meds go and then introduce your needs re: the student loan at a later visit or go back and see an old physician that you trust and first get on the med. regimine and then later discuss the loan thing.

I would never discourage anyone from working because of a BK, but in your case, I certainly think you need to get your health under control first! You need to be open and flexible to take the meds, get through a couple of weeks of those side effects that do pass...and be able to make frequent visits to the doc if needed....you can do all this while preparing your BK, but I think throwing a job in the middle of all this would be too much to handle plus then the student loan thing would go out the window and you still wouldnt be able to afford to pay them on what you would be making.

hope this helps
cindy

[HHM]

Anymore, it does not matter whether the student loans are private or not.

Basically, whatever this mental "disability" is, it must be severe enough and untreatable enough such that you are unable to earn enough income to both meet your basic living needs and make payments to your student loans.

[LilStevens]

Please Delete This Username/Profile

[zwiepak]

Not sure if this will apply to you, but I'll throw it out there nonetheless...

I have gotten my federal student loans discharged.

Yes, there is a way to do it, but with all things, conditions do have to be met.

For me, I sucessfully used the school "falsely certified my ability to benefit" clause. Do a google search on the concept. Basically, I went to college for 3 years, dropped out, defaulted on my student loans, then pulled afore mentioned concept, and wham-o, all gone. This was back in 1997, and I have the letters to prove it too. I then transferred my credits out and finished up over the next 5 years at various other schools on a cash/tuition re-imbursement basis...

[HHM]

Keep in mind, that type of discharge is unrelated to bankruptcy.

Here is a quick summary

All student loans authorized by Title IV of the Higher Education Act can be canceled if you die or become permanently and totally disabled [but you cannot be considered disabled on the basis of a condition that existed when you applied for the loan unless it has substantially deteriorated, 34 CFR 682.402 (e)]. Stafford, PLUS, and WLS loans disbursed ( given to you) after January 1,1986, can be canceled under two additional circumstances:

(a) the school you attended improperly certified your ability to benefit from the training given, or

(b) the school you attended closed while you were in attendance or within 90 days after you withdrew from the school.

In addition to the above four reasons, a National Defense Student Loan can be canceled if you enter into full-time teaching or military service. A National Direct Student Loan and a Perkins Loan can be at least partially canceled under two more additional circumstances: becoming a Head Start Program Staff Member or a Peace Corps Volunteer.

A Perkins Loan can be at least partially canceled under 5 different additional circumstances:

1) As a Peace Corps or VISTA Volunteer,

2) As a full-time law-enforcement or corrections officer for loans received after 11-29-90

3) Entering a full-time teaching position

4) Becoming a full-time nurse or medical technician for loans disbursed after 7-23-92, or

5) As a full-time employee of a public or private nonprofit child or family services agency if your loan was disbursed after 7-23-92.

Here is some additional information on False Certification

If you were admitted to a school without a high school degree after 7-1-87, you are generally able to get a false certification discharge. The Department will find the school falsified your ability to benefit in the program unless you did one of the following:

1) passed an "ability to benefit" test approved by the Department (or prior to1991 by an accrediting agency) that was administered properly,

2) successfully completed a program of developmental or remedial education provided by the school, or

3) enrolled before 7-1-91 and received at GED before completing your program of instruction.

If your loan is discharged, you will owe no more payments, You will get a refund of past payments. Moreover, the servicing agency will tell credit reporting agencies that the loan was discharged. Any negative credit history should be deleted. You can now apply for more federal student financial aid. The full criteria by which borrowers may qualify for a false certification discharge may be found at 34 CFR 682.402 (e).

[LilStevens]

Please Delete This Username/Profile