My chapter 7 bankruptcy was discharged on April 13th of this year. Today I called Sallied Mae about starting my monthly payments again but they had no open loan on my name or my wifes. When they searched further they came back on the phone and told me that higher ups had my loan written off! I said " What exactly do you mean by written off?" The lady that did the research on my loan said it was forgiven by Sallie Mae! I said well I never received any documents stating that it was written off . She told me that they will mail me a.letter for me and my attorney. I told them yes please do because I don't want this to come back and haunt me years later! Does this happen at all with a Sallie Mae student loan? Anyone ever had their student loans from them forgiven? It seems unreal! I mean if this is real then I must be so lucky!
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It sometimes happens...it would be helpful if you filled us in (maybe you did in other posts) on the background of the student loan? For example, what sort of school was it for, was it your loan, were you a cosigner, etc. I have seen this happen where the loan in questions wasn't really a student loan (just a pure, private signature loan that was "marketed" to help with education, but wasn't a student loan under the appropriate definition). Although Sallie Mae usually is the last stop for many student loans, keep in mind, Sallie Mae is largely a servicer of loans (e.g. collect payments). When a student loan goes into default or bankrupt, the servicer will usually send the loan back to the guarantor agency (if there is one). So, if this is a "real" student loan and it was federally guaranteed, don't be surprised when a you get a latter for the Dept. of Education wanting payment. -
Isn't it also true that "forgiven" debt (of any sort) becomes income subject to federal taxes?Comment
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Yes, technically, unless the debtor qualifies for an exception.Originally posted by kornellred View Post
If the debt is discharged in BK, then no tax.
If the debtor is insolvent when the debt is forgiven, no tax.Comment
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Aren't you lucky! If only I could have that type of luck.Comment
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Thanks for the reply everyone. HHM the student loan that I had was for my 10 year old son at Sylvan learning center. I was told it was a student loan but maybe it was just a regular loan. I haven't had time to look it over as I am at work right now. I sure am lucky if so! I had over $7000 left on it. Thanks again for the replies.Comment
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Okay, that is what I figured...that is NOT a student loan.
The definition of student loan is for "higher education", e.g. post high school. Sorry to say, that was just a personal loan as to you, not a student loan. So, sorry to burst your bubble, but you received NO special consideration or had any special luck, you basically discharged a loan that was no different than a credit card or personal loan with a bank.(1) Qualified education loan
The term ''qualified education loan'' means any indebtedness
incurred by the taxpayer solely to pay qualified higher education
expenses - IRS Code 221(d)(1)Comment
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Darn! I was getting ready to ask for tips on how to unload my student loan. Oh well!Comment
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