Do student loans automatically go into forbearance?

[SFernandez13461]

We filed earlier this month, and I knew I wouldn't be able to include my student loans but listed them among my debts, and I just found out they put my accounts in forbearance until next March. I was just wondering if this happens automatically or it's something I should find out more about. 

Thanks.

[0REDSOX7]

It is perfectly normal for this to happen.  Both my wife's and my student loans go into a BK Forebearance.

What will happen is you can either 1) keep making payments (need attorney/trustee approval because can be considered creditor preference) or 2) stop making payments. 

Obviously doing #2 will cause interest to accrue - but it will be capitlized when you are discharged and added to your loan balance.  Some lenders will not allow payments while in BK so if you need/want to pay, make sure they accept it and find out where to send it.

This is what we did - it saved us $400.00 a month for five months.  Perfect right around Chirstmas, too!

When you come out of BK and get discharged, it will be your responsibility to find out if they were sold during your BK.  Many of them are.  If they are not, payments will resume without much notice to you so keep on top of it.

Hope that helps.

[TRC_WA]

I have 5 small loans (about $5500 total) through Sallie Mae.

My payments stopped for the length of my 13... And when discharged they reset to fresh 120 month payment plans. I was given new TLs that were backdated which really helps my AAoA since I originally took out the loans in 2001.

Shortly after discharge I was notified of my "new" account status.

My first payment was due 45 days after discharge. They contacted me so it was really easy.  At 2.1% APR with a $58 combined monthly payment the 5 accounts are much better than any credit builder loan.  

[SFernandez13461]

Thanks for your responses. I asked my attorney about it too, and he said it was fine either way. I think I'll wait to resume payments and see what happens after the discharge. I'll be sure to keep on top of it though. I don't want to mess up one of my few remaining positive tradelines.

[Anonymous]

This was a big question I had when I first filed. 

I was trying to get everything back on track and I called them up and was informed they were on BK forebearance. Mine is set to last a whole year from when I filed though. I plan on getting in touch with them after my discharge, consolidating, then start paying the darn things off.

About $40k though.. ugh 

[SFernandez13461]

40k? I'm sorry. I hope you got a more promising career out of your education than I did. I'll have a little more than half that amount of debt to repay, and it stresses me out. Good luck!