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Personal Bankruptcy bankruptcy & student loans
- Thread Starter doc0875
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jmacgregor
New Member
Filing for bankruptcy will not forgive the loans.
Effective October 8, 1998, your obligation to repay Title IV, HEA student loan and grant liabilities can no longer be canceled (discharged) due to bankruptcy. Simply put, if you file bankruptcy, your student loans will not be forgiven. However, Most banks will allow you, under the guidelines set up by the Federal Government, "hardship" deferments. Usually this is only approved for extreme hardship (unemployment is not necesarily considered a hardship!) and for only six months at a time up to a total of three years. The interest will continue to accrue while the payments are deferred.
The only other option I can think of that you may look into is to request a temporary deferment of payment otherwise known as a forbearance. THis is an extension of the repayment period and/or the allowance for you to make smaller payments than required.
Effective October 8, 1998, your obligation to repay Title IV, HEA student loan and grant liabilities can no longer be canceled (discharged) due to bankruptcy. Simply put, if you file bankruptcy, your student loans will not be forgiven. However, Most banks will allow you, under the guidelines set up by the Federal Government, "hardship" deferments. Usually this is only approved for extreme hardship (unemployment is not necesarily considered a hardship!) and for only six months at a time up to a total of three years. The interest will continue to accrue while the payments are deferred.
The only other option I can think of that you may look into is to request a temporary deferment of payment otherwise known as a forbearance. THis is an extension of the repayment period and/or the allowance for you to make smaller payments than required.
DSCOTTKERR
New Member
wHAT HELPED ME
i OWE ABOUT 60,000 +/- ON STUDENT LOANS.
I was unable to make payments, and I was near legal action by the Banks. Then one debt collector took the time to politely listen to my situation, and work with me on a solution. My loans are now all out of default, and I'm in good standing. I got a William D. Ford consolidation loan. this refinanced all the smaller loans into one new loan, now instead of owing $500.00 a month in payments, it's income based, and it's like $20.00 a month. for a long time my payments were $0.00 a month. you can find out about a William D. Ford loan at http://www.dlservicer.ed.gov
it's a great program, and it solved my student loan headaches.
Not sure if it'll help you, but hope it does.
i OWE ABOUT 60,000 +/- ON STUDENT LOANS.
I was unable to make payments, and I was near legal action by the Banks. Then one debt collector took the time to politely listen to my situation, and work with me on a solution. My loans are now all out of default, and I'm in good standing. I got a William D. Ford consolidation loan. this refinanced all the smaller loans into one new loan, now instead of owing $500.00 a month in payments, it's income based, and it's like $20.00 a month. for a long time my payments were $0.00 a month. you can find out about a William D. Ford loan at http://www.dlservicer.ed.gov
it's a great program, and it solved my student loan headaches.
Not sure if it'll help you, but hope it does.
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