Sallie Mae, in fact, discharged!!!

[itsybuggy]

Just spoke with Sallie mae bankruptcy department, for third time this month. I looked at my credit history and all three show that my loan was included in bankruptcy and discharged, with zero balance. Knowing that Sallie Mae sometimes sells accounts to different companies, i kept calling, and i finally managed to reach advocacy dept. and then bankruptcy dept. Lady i spoke with is american, not a rep from india. I told her what i am seeing in my credit report, and i said i am confused because not only that i am aware of the fact that student loan can't be discharged, but even my attorney didn't want to go there. She said that criteria for discharging student loans is very strict, but that mine actually did qualify and got included in bankruptcy proceedings, where it got discharged. I proceeded to ask if they sold it to another company, she replied no, the loan is discharged and balance is zero. She also said that i am due a refund of the $51.00 i paid in May, and she will put it to be mailed within 2 weeks along with written statement of zero balance.
For the reference i have to say that i had private, carrier or training loan, original amount was 6,000 and i owed 5,320, spread over 15 years at 51.00 per month. I have no idea what happened here, i asked her 4 times if she is sure, and she said yes, loan is gone.
I don't know whether to celebrate or not, but this loan was one thing keeping me up at night. School was totally useless and money was taken from me under false claims of promising career in less than two weeks of education, which was the reason why i was always upset about having to pay for this for 15 years...

[AngelinaCat]

I don't know whether to celebrate or not, but this loan was one thing keeping me up at night. School was totally useless and money was taken from me under false claims of promising career in less than two weeks of education, which was the reason why i was always upset about having to pay for this for 15 years...

It sounds like you got hooked up with a diploma mill...

I sure hope and pray that this debt truly is gone.

[HHM]

One of the exceptions to student loans not being discharged is if the school falsely certifies a student is eligible for student loans. Normally, the debtor (you) need to prove this, but there may be known issues with the school in question and Sallie Mae is conceding the point. However, I wouldn't rest too easy, odds are the debt will end up in the hands of a junk debt buyer.

http://www.**********.com/blog/2012/...harge-options/

[itsybuggy]

I really tried hard to confirm with her that debt didn't get transferred to some one else, or to collection agency, and she kept saying that our loan was included in bankruptcy, because this particular loan was a rare one that actually qualified for a discharge.
My question to her was :"Do i owe money to Sallie Mae or to anyone else?" Her answer was no, your loan is closed and balance is zero. I am refunding your May payment that posted on 21st.

I was searching this issue on the internet and i found some info, for example if loan is sold to another company or collection agency, Sallie Mae still collects the payments sent to them and forwards them to appropriate address. Didn't read anything about Sallie Mae refunding payments already received.

[Fresh]

That is so awesome! I really believe your loan is gone. I would check for a while, but I think you will not have to deal with this. I am going to send this thread to a friend of mine who felt so defeated about a loan he took out and had problems with this tech/vocational school. He's come a long way in resolving it and I think this will encourage him to keep going. Mucho congrats!!

[itsybuggy]

I just checked my husbands credit history and it also says zero balance, included or discharged in bankruptcy, account closed. My husband was a cosigner. Last year for no good reason sallie Mae took my loan from me and made him solely responsible even though i always paid on time, 10 days prior to due date, never late.
I am going to call again and check if they maybe dumped the loan back on me, i'd rather know and pay than be slammed with high balance later on. It was actually my husband who called today to check on the loan and he was told it was discharged.
Both our credit report say same thing though, and both show account closed. When i try to log in t my online account and type my old info, it says that there is no record of loans in my name. I will call tomorrow, and see what they say about me, personally as the original borrower on the loan.
Response from my attorney was (in plain english, cause he quoted the law):
No loan with interest that can be written off by IRS on the end of the year can be discharged under any circumstances.

My loan always said: Not tax return eligible.
Every year in january i'd log in to print tax form so i can claim interest on my tax return, and it would say :"This type of loan is not eligible for tax exemption.Nothing to print."
I am dumbfounded. I'd rather pay every month than deal with this.