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HELP!! Completed CH 13 payments but Federal Student Loan Servicer saying I still owe interest

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HELP!! Completed CH 13 payments but Federal Student Loan Servicer saying I still owe interest

Hi BK Experts,

 

First off, happy to say that after 5 years, I just submitted my final ch 13 payment. I'm NEARLY at the end of the tunnel (hopefully... details to follow). 

 

My remaining situation is this:

 

My federal direct student loans were included in my chapter 13 plan for roughly 19k. I finished paying that amount but i checked the website www.myfedload.org (servicer for my direct student loans). It still says I have a balance of ~5400. Interest had been accruing on my student loans since my freshman year of college basically. My trustee's office is saying they are not aware of a remaining balance, but the servicer is still demanding I pay the remaining balance.

 

 

From the student loan promissory notes, it says I am obligated to pay interest however I don't know how ch 13 impacts this. 5 years ago, a rep from the Loan Servicer submitted a Proof-of-claim to my ch 13 in the amount of 19k. 

 

Any ideas how to proceed?

 

Thanks for any help in advance!!

Ch 13 Filed 9/2011
Current FICO Scores as of 12/30/2016: EQ/EX/TU 670s
Cards: AAdvantage Aviator 3000, DiscoverIT 3000
4 REPLIES 4
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Frequent Contributor

Re: HELP!! Completed CH 13 payments but Federal Student Loan Servicer saying I still owe interest

Unless your Chapter 13 Plan provided to pay the S/L in full, including the contract rate of interest, you would still owe the interest since such would generally not be subject to the entry of your Discharge.  Unfortunately, I think the only solution will be to try to work out a payment plan for the interest that accrued but was not paid under the Plan.

 

Des.

Message 2 of 5
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Frequent Contributor

Re: HELP!! Completed CH 13 payments but Federal Student Loan Servicer saying I still owe interest

Same thing happened to me, at first I was pissed because I thought everything was paid.  But on the brighter side I now have a $50 per month payment for the next 20 years to improve my AAoA.  Smiley LOL

12/27/16 - Eq683 TU666 Ex681 04/05/17 Eq742 TU763 Ex757
Message 3 of 5
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Established Contributor

Re: HELP!! Completed CH 13 payments but Federal Student Loan Servicer saying I still owe interest


@oldman425 wrote:

Same thing happened to me, at first I was pissed because I thought everything was paid.  But on the brighter side I now have a $50 per month payment for the next 20 years to improve my AAoA.  Smiley LOL


Yep, same thing here!  My payment to Navient is about $50, but I am paying double each month (because I can). 

 

Ugh I was SO mad, but now its actually good thing!

Message 4 of 5
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Regular Contributor

Re: HELP!! Completed CH 13 payments but Federal Student Loan Servicer saying I still owe interest

I'm just about done with my 13. I'll pay it off in February. I have about 15k in federal student loans between two different servicers. Does anyone know if these can be consolidated ahead of time?
Message 5 of 5
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