Educational Loan owned and controlled by the University - can it be discharged?

[cameron98sr]

Hey all - I am so glad I found this forum!

I am in the process of a Chapter 7 BK and have a question. About 5 years ago, I received a student loan from the University of Oklahoma (Im pretty sure I signed a promissary note). For whatever reason, they did not turn the loan over to a bank, but instead kept the loan with the school. About a year ago, I was served with a judgement and have been paying on it ever since. Since the loan is not a federally backed loan (apparently since its not serviced by a loan agency) and is the "note" is the with the school, can it be discharged? Is there any harm in sending notice to OU and see what they respond with?

Any help would be appreciated

thanks

[justbroke]

Even if it's a university sponsored loan, if the university is not for profit, or is in any way partially government funded, then it is non-dischargeable.

You should always assume student loans -- whether government or not -- are non-dischargeable. You would file a complaint via the adversary proceeding (AP) to make a determination.

[HHM]

Non dischargeable, sorry.

[MsKMG86]

I have school loans which aren't dischargeable but i also owe 2 schools a balance even though I had financial aid (loans). if you owe the school directly and not sallie Mae or department of education then it can be discharged. My Atty included my school balances under my ch 7. Of course my sallie Mae/dept of edu loans of $50k will survive bk.

I currently had a call from one of the schools I owe but told them I filed and the rep stated she would update in their system. You should check with your Atty to see if yours will be considered as a debt owed directly to the school bs normal school loan guidelines.

[justbroke]

You can't discharge "private" school loans if that school is non-profit. The only way you can discharge any loan that is for the benefit of education (to pay for education), is to file a complaint (adversary proceeding) and claim a hardship.

It does not matter if the loans are government direct, government backed, or private. Do not be surprised if the school sells the bad debt and you find yourself paying those loans back! (That is usually the case.)

[dumpinmydebt]

What you need to determine is whether it is a loan, or just an amount owed to the college.

For example, if I dropped certain classes and fell below the minimum # of credits required to receive financial aid according to my lender, I would actually owe the college money because my lender would not send the school the loan disbursement. Or, if my lender did send the loan money to the school but it wasn't enough to cover the expenses, I would owe the college money.

However, in your situation, it just sounds like your school is handling the loan instead of sending it to another party.

There would be no harm in sending them a bk notice and listing the debt.