Another Student Loan Automatic Stay Question

[jacqui]

I filed Chapter 7 last Friday the 18th. I have heard time and again that i could take a break from my student loan payments while my case is active. I have planned on doing this to get some money in savings (yes I realize interest will still build) It has been one week since filing and both my direct loan and Sallie mae online accounts are still active and are reporting as late (due within the last couple days but after filing date). How long has it taken others to lose their online access? Will they go back to the filing date as the date of deferment once they receive the automatic stay notice? This is the first time i have ever missed a SL payment so a little nervous, any info would be appreciated.

[SMinGA]

You filed 7 days ago, including the weekend. Mail can easily take a few days, plus time for processing. Call your student loan lenders, advise them you have filed and give them the case #.

[dumpinmydebt]

I had my Sallie Mae loan payments put on hold due to hardship a year ago. I didn't call, I just used their instant messenger thing they have online and emails. They sent me some paperwork, which I scanned and emailed back. Quick and painless, they were very nice. They are one of the few creditors that seem like they want to help you.

As the above poster said, give them a call and give them your case number. Mail can take around 2 weeks.

[JackBondLove]

I am curious. If you file Chapter 7, do you get to freeze the student loan debt (i.e., stop it from increasing exponentially), either temporarily during the Chapter 7 procedings, or forever?

[dumpinmydebt]

No, the interest will continue to accrue. But you will not be required to make monthly payments while in the BK.

You cannot freeze the debt nor the interest, you can only temporarily suspend payments.

[Ann]

Here is my experience...We filed 7 in May. I have my payments automatically withdrawn from my bank account on the 7th of every month. When the 7th came I noticed there was no withdrawal. I called and asked about my student loan status and asked why they did not withdraw the money when they were supposed to. They informed me that my account was in forbearance. I never asked them to do that. She said as soon as they got word of my chapter 7 it was done automatically and that my payments would start up again in October. I was glad because it does free up a few dollars for me but I never really thought about the fact that they might report me late. Funny, if you think about it. I guess I could care less what they report though, right?

[jacqui]

Thank you for all the replies! I gave both Sallie Mae and Direct loans a call and let them know I had filed. SM said they would contact me when it was time to make payments again. DL put me in forbearance for a year! It will be great to have a little extra money each month while I get on track. Thanks again!