QUESTION
$35000 in school loan debt cant afford anymore
Asked on May 10th, 2013 on Bankruptcy - Texas
More details to this question:
Went to a 2 yr college; after graduating in 2006 I found out it was an non-accrediated school and I got big bills from Sallie Mae. I was told at the school that i would only pay approx $3000. So it was a suprise when I recieved big bills from Sallie Mae for over $ 25000. Being responsbile, I started making $400 pymts until I couldn't go it anymore in 2009. Then the collection calls started. It has come to a point where I can not pay anymore; I barely have enough living expenses and groceries. I have come to a conclusion that I would have to file for bankruptcy b/c I can not save, my credit is in the low 500s b/c of collections and I will never be able to pay my debt off.
1 ANSWER
J. Thomas Black
Student loans are not dischargeable in bankruptcy except in the case of "undue hardship," which can be very difficult to prove in court.
If your student loans are federal loans, you have several different discharge and repayment options instead of bankruptcy. You can go to http://www.nslds.ed.gov/nslds_SA/ and print out a list of your loans. You can then go to http://studentaid.ed.gov/repay-loans and review your repayment options. If you are still not sure what to do, make an appointment with an attorney that is familiar with student loans and get advice. You may have to pay a consultation fee or a fee to analyze your options with you.
If your loans are private loans, your repayment options are currently limited. Private student loans are not currently dischargeable in bankruptcy, but at least they cannot garnish your pay in Texas unlike federal loans. Also, private student loans are subject to the state statute of limitations on the collection of debts, unlike federal student loans. If you are sued by a private student loan lender, hire an experienced consumer law attorney to represent you.
Answered on May 13th, 2013 at 6:53 PM