Student Loan Expenses?

[crescentmoon]

My attorney gave me a giant packet of information to fill out, and he had me add one line to the expenses page, for student loan payments. Everything that I've been reading had me thinking that I couldn't use student loan payments for Schedule J (I think it'll end up going on Schedule J, anyway). Our student loan payments are about to be close to $700/month (they are currently around $300 per month for my loans alone), because my husband has decided to not continue with his PhD program. Does anyone know if these will be allowed for monthly expenses?

KBB

[LuciluS]

This is one of those 'Gray' areas which is not specific in the 2005 Bankruptcy Law. Some District/States allow it and some don't.

I would think if it is listed on your Attorney's expense list, then your district/State allows it. But, to be sure, I would call and ask the Paralegal or your Attorney.

Luci

[bkmaggster]

I have $500/month on my schedule J. Trustee didn't say anything about it, and I'm in my 60 days. What did you read that said it wouldn't go on schedule J? You have to pay them, they are non-dischargeable - why wouldn't they be listed as an expense?

Just out of curiosity - why is your dh abandoning his PhD? Is he not funded? Could he get funding?

[crescentmoon]

The particular program that he is in is really not right for him. He has a very particular background, and the program that he is in really needs a different background (he has a pastoral counseling background, and the program really requires a clinical counseling background). He'll hopefully choose a different program, but for right now, he's pulling out. Good thing he decided this pretty early on, instead of waiting 2-3 years!

KBB

[VirginiaGuy]

My monthly payments on my student loans are 1250 dollars. I am going to include them in my expenses when I file and my attorney says that doing so is pretty standard. This is my single largest monthly expense and it wouldn't make sense not to include them since my student loan payments are the reason that I can't pay my CC debt and am filing bankruptcy.

[crescentmoon]

Excellent! I'm so glad that I asked!

I think I get myself all confused from reading everything on this forum! Thanks for all your help!

KBB

[bkmaggster]

My monthly payments on my student loans are 1250 dollars. I am going to include them in my expenses when I file and my attorney says that doing so is pretty standard. This is my single largest monthly expense and it wouldn't make sense not to include them since my student loan payments are the reason that I can't pay my CC debt and am filing bankruptcy.

HOLY! How in the world did you end up with payments like that? Have you not consolidated yet? Are they private loans? That is just insane! Between DH and I we have 100k+ in student loans, but payments are only around $500/month, most of it is federal at 2.5% for 30 years. I'm going back for my PhD this fall, fully funded, as it gets me out of paying on the SLs and gives me a small salary and free healthcare. It's my own personal bailout plan.

[VirginiaGuy]

I have 75k in federal loans which only require a payment of 300 dollars a month. It's the private loans that are the problem: 150k at 950/mo! That's the price of being the first in your family to go to college and grad school. Social mobility is really being hampered in this country and will continue to be until sane public officials are elected who won't let the robber barons write the nation's laws.

Incidentally, if I could do it over again, I would have skipped grad school and gone to a cheap state school for undergrad and majored in accounting or something highly practical.

I was shocked when I heard that some jurisdictions won't allow student loan payments to be included as a monthly expense. The nation's banks and lenders can't have it both ways, even though they seem to own the government. Debtors should either be able to include student loan debt with the rest of their unsecured debt when they declare bankruptcy, or student loan payments have to be treated as monthly living expenses similar to rent and utilities.

[crescentmoon]

Lucky you to consolidate at 2.5%! My husband and I are both fixed at 6%!

KBB