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What is a "charge off" on student loan??

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    What is a "charge off" on student loan??

    I searched the boards for an answer to this, to no avail. I have a private student loan with Wells Fargo-I know student loans are not dis-chargeable. I was under the assumption that during the automatic stay I don't need to make payments on my student loans, that they were automatically in deferment. I haven't received any bills. (also, I have no job and no income)

    Called Wells Fargo today and they said I'm 60 days past due. That I need to pay $220 to be current then I could apply for a 2 month forbearance. I told her I had NO income and NO job. She said it doesn't matter. They will not do a 2-month forbearance unless I'm current.

    I asked what would happen if I just couldn't pay because I didn't have a job (they're unwilling to defer it). She said after 120 days late it would be "charged off" and the full amount would be due.

    Does anyone have experience with this? Will the interest keep going up? Will my $8,000 loan turn into a $20,000 loan? Does "charged off" mean it goes to a collection agency and I can settle for less than I owe?

    Also, aren't student loans automatically in deferment/forbearance while awaiting discharge? Any references/experience greatly appreciated!
    Filed chapter 7 3/19/09
    341 Meeting 4/13/09
    60 day club!

    #2
    Call WF ask for BK dept, give them your case #.

    They shouldn't be able to collect when you are in BK. Tell them you need a BK forebearance.

    Keep asking for a supervisor until you get the answer you need.

    CSR's typically are clueless.

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