topic Re: Fedloan servicing in Bankruptcy

Fedloan servicing

Anonymous — Fri, 18 Nov 2016 01:43:09 GMT

Does anyone have any experience with Fedloan servicing and ch. 7? I known that most student loans are not dischargable and I've been planning on starting repayment after discharge.

Now out of the blue three weeks before discharge they've updated to closed, zero balance and included in bankruptcy. Is this accurate? How could it be a zero balance? Looking for others expierence with fedloan serv. Thanks for the help!

Re: Fedloan servicing

Kixforpa — Mon, 21 Nov 2016 07:02:17 GMT

I am having the same results. The only thing that is different is I had my 341 Meeting on 11/02 and a continuance was issued due to some additional document request. I was informed on Friday after providing the documents that I would no longer had to attend the continuance and that I will be discharged possibly the first week of January.

The changes to Fedloan took place for me a few days after my original 341 meeting. All my loans updated to closed, zero balance and included in bankruptcy. I wonder if after discharge will it revert back? Any thoughts?

Re: Fedloan servicing

SSH0126 — Mon, 21 Nov 2016 13:23:10 GMT

They are not going anywhere just because of bankruptcy..extreme circumstances and Bk is not one of them so yes you're stuck with them.

Re: Fedloan servicing

0REDSOX7 — Mon, 21 Nov 2016 18:06:34 GMT

It is normal for them to update it, but, rest assured, as soon as your BK is over, it will switch back.

One thing about student loan servicers is that, depending on when your payment due date is in relation to your discharge date, you may have to pay that month's student loan payment, even if there was not enough time to send you notice. This happened with my wife - dicharged on the 15th and student loan due on the 26th - we had to pay on the 26th, even though we didn't get the letter yet (I just happened to log on to check and I am glad I did).

Re: Fedloan servicing

Anonymous — Thu, 24 Nov 2016 09:42:21 GMT

Hello,

Mine are reflecting the same thing. According to my attorney, I will never be able to pay my student loans off if I remain at my same job. I have been there for 7 years and in my state, big incomes are rare within the state but relocation is an option but requires some major savings. I wonder too if they will pop back up? I heard that the Brunner (spelling) test is done by the court to see if it would cause or has caused an undue hardship. If you get an answer please post as I am recently discharged.

Re: Fedloan servicing

StartingOver10 — Thu, 24 Nov 2016 15:59:41 GMT

Refer to the post above you by 0REDSOX7 for accurate info.

Do some research - you will see it is almost impossible to pass the Brunner test. In other words, expect that your student loans are not dischargeable and you will need to do what you have to do to pay them off.

Re: Fedloan servicing

Anonymous — Thu, 24 Nov 2016 15:51:44 GMT

I know they aren't dischargable, I was just surprised they reported it as included in bankruptcy. My theory is that since fedloan servicing is connected to the department of education they closed off their part and will send the loan back to department of Ed. They will probably re-open with a new account number. Only a geuss though, discharge is only about 2 weeks away so I'll find out soon!

Re: Fedloan servicing

Anonymous — Mon, 28 Nov 2016 02:51:58 GMT

That's weird. Mine didn't show any changes at all when I filed last year. I have two older Dept of Ed loans that had been consolidated years ago, and a more recent Direct Loan. Whatever it shows, I agree with everyone here they are most definitely not dischargeable in BK.

Re: Fedloan servicing

apay — Sat, 05 Aug 2017 04:11:02 GMT

Curious to know if your FedLoan came back up? Mine is showing as zero and included now.

Re: Fedloan servicing

pizza1 — Mon, 07 Aug 2017 02:45:26 GMT

I also have FedLoan Servicing for my school loans. I found them very easy to deal with during and after my BK. During the BK process, my loans did as yours...report Discharged etc... even though they weren't (you need very extreme case to have them discharged).

I called them when I noticed it, and they said they will reverse it once the DC is final. They did, and they were very good about restarting a payment arrangement with me. I told what I could afford coming right out of BK for a few years, and that was that.

Shortly after DC, they removed anything negative on the acct, and brought it to a current/paid status (I never had lates, I was only in deferment for like 4 years prior LOL), and my new scheduled payment was showing.

I had a very good experience with them, as much as you can have going thru a BK, but they were very willing to work with me on starting payments again, and accepted what I could afford at the time to pay them.

Re: Fedloan servicing

Anonymous — Mon, 05 Feb 2018 06:17:49 GMT

Any updates on if your student loans showed back up on your credit report after your bankruptcy?

I am currently going through the same thing you went through.

Thanks in advance.

UsoDak

Re: Fedloan servicing

apay — Mon, 05 Feb 2018 13:37:58 GMT

Yes 😑. They showed back up shortly after.

Re: Fedloan servicing

onstar — Mon, 05 Feb 2018 18:50:19 GMT

Has anyone here successfully passed the Brunner test? My first student loan was in 1990. I've probably paid $50K in my lifetime, and the balance is still higher than what I originally took out. My attorney is hopeful that it will be discharged, but obviously not 100% certain.