Student loan debt? Bankruptcy? They want me to repay them now?
June 28, 2010 by admin
Filed under Student loans
I have my federal subsidized loans which are on hold right now, but apparently I took at a $3,000 loan from Bank of America/ACS which I do not remember. Long story short, I dropped out because I found out my college made a mistake (they enrolled me in the wrong major) and I was taking 12 credits all of which I didn’t need. It was too late to get a refund or change courses so I got billed.
I am in NY state.
Due to a divorce, family illness and death I only made $3000 last year. I am on food stamps and medicaid working a crappy job because I cannot get back into school just yet, however, if I do not pay this loan will I be screwed when it comes time to take federal loans for the spring of 2011 when I do go back to school? What can I do besides claim bankruptcy so that I can be rid of this and finally finish my degree?
STEVE: They DID enroll me in the wrong major, I got a letter of apology from the department head.
since you plan on going back to school which is great ! you should definitely give them a call and let them know maybe they can let you repay after u graduate since you are still a “student”
goodluck
I might be wrong, but I don’t think you can discharge student loans in bankruptcy.
You CAN’T discharge Federally subsidized student loans though bankruptcy. The SCHOOL did NOT enroll you in the wrong major. YOU enrolled in the wrong major. What you MUST do is GROW UP and take responsibility for YOUR actions to date.
http://bankruptcy. lawyers. com/Student-Loans-In-Bankruptcy. html
“Student loans are not dischargeable in bankruptcy unless you can show that your loan payment imposes an “undue hardship” on you, your family, and your dependents. ”
“It is almost impossible to show an undue hardship unless you are physically unable to work and the chances of your obtaining any type of gainful employment in the future are non-existent. ”
Besides, filling for bankruptcy is not free! You’re going to file bankruptcy over a $3,000 debt? Where are you getting your legal advice? Whomever your getting your legal and financial advice is practicing without a license and is ignorant!
>”I dropped out because I found out my college made a mistake (they enrolled me in the wrong major) and I was taking 12 credits all of which I didn’t need. ”
Having multiple college degrees and been through the enrollment process multiple times at different institutions myself, this is a “bu|| sh|t” excuse!
There is more to college than just showing up for classes. At what point do you take responsibility for doing the research yourself to understand upfront what you’re supposed to do and what you need? As long as you continue to blame circumstances beyond your control this is pretty much the script of your life! There is more to college than just academics and picking out majors, and I can tell you right now your not ready, you need to grow up!
you are not the first poor fool that they had stolen from. . . luck 4 all of you,that there is an institution called the citizen lawyer. . . just find it and complain and your ssituation will be resolved easy and free!Trust me!
The others are right; federal student loans are non-dischargable debt unless you can prove undue financial hardship, which is very hard to do.
What can help you right now is to put your loan on deferment. Send your lender the Economic Hardship Deferment Request form with a copy of the approval letter for your food stamps. You qualify for this deferment under option 2 (receiving federal or state public assistance), so be sure to check that box. Here is the form: http://www. studentloan. org/Docs/federal-loans/forms/economic-hardship-deferment-request. pdf. Please note that I am not associated with this company it is only where I found the form.
If you have a subsidized student loan the government will pay the interest while your account is in this deferment. If you have an unsubsidized loan, you will be responsible for the interest. You can make payments during the deferment, but are not required to make any payments until after the deferment has expired.
This deferment is typically processed for one year at a time and you can use up to three years of the Economic Hardship Deferment over the life of your student loan.