Private College Student Loan

Can you bankrupt a Sallie Mae student loan?

My sister is getting a hard time now divorced, single parent of a 3 year old and no child support YET, and paying rent, car insurance, gas, food and what have you.

Public Comments

1. Normally, a student loan can not be discharged through bankruptcy. She just needs to ask for a deferment until she can get back on her feet. Good luck!
2. Have her try for an economic hardship deferment. Student loans are exempt from bankruptcy protection. In order for the loan to be cancelled, she has to prove fraud by the lender or by the school she attended.
3. I know after Joe Biden put into law the bankrupty new law that maes it much harder for middle class America to claim Bankrupcty. Thanks JOE he also voted for the Patriot act which is a attack on the US citizens rights.
4. You can claim bankruptcy just about anything, but she does understand that it ruins you credit for a long time. So if there is any chance of borrowing money or getting other help is the best bet.
5. No, your student loan is one of the only things that wont go through a bankruptcy. What she can do is call and request a forbearance. They can let her stop making payments until she gets on her feet again. They usually let you do this from 6-12 months. Then you can call and ask for another one if you need it.
6. No if you file Bankruptcy you still have to pay back your student loans. Trust me I already asked. I can't believe I spent all that time and Money for an education and can't find squat for a job.
7. bankrupt isn't the answer. if you bankrupt, you get to do everything! you have to talk to them about keeping the car payment, but other than that its everything. tell her to consolidate first. use bankruptcy as the very last last resort. it takes 7-11 years to come back from bankrupt. you cant get a car, an apartment, credit cards, NOTHING! Don't do it if you can
8. She can apply for a hardship deferement due to her financial struggles and situation, but you can't include federal student loans into a bankruptcy. They just don't allow that unless you have EXTREMELY extenuating circumstances (i.e. you become permanently disabled and will never be able to work again for example). She can explain her situation and most times, they're really good about putting repayment on hold until the situation improves. She just has to get in touch with them and explain everything.
9. No. She needs to ask for a deferment.
10. If she legally claims bankruptcy, then yes, they can be claimed bankrupt. BUT, if she hasn't finished school and is planning to go back, she will not be allowed to receive another student loan until she reclaims the debt and makes arrangements to pay it.