Can you file bankruptcy on private student loans?
My husband and I have a large amount of debt due to student loans. However, only a couple of thousand are through the government. The rest are through private companies. If we were to file bankruptcy I know that the federal student loans would still have to be repaid. But what about the private student loans? Would those be charged off or would we still have to repay those as well?
Private student loans are not covered by bankruptcy
This entry was posted on Monday, February 4th, 2008 at 12:00 am and is filed under bankruptcy and student loans. Follow the comments through the RSS 2.0 feed. You can post a comment, or leave a trackback.
Check your promissory note. Even though they are private loans, it still would depend.
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Bursar's Office employee
November 22nd, 2008 at 1:50 pm
Read the fine print on those loans, and you’ll probably find that you gave up the right to file bankruptcy on them when you took them.
People have tried to get around paying student loans for years. The private ones default to Government payment—and then they go after your salary, etc. You also won’t be able to buy a home with a defaulted loan on your record.
You could ask a lawyer, but they have been fighting this as long as student loans exist.
Good luck.
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November 22nd, 2008 at 2:16 pm
A large number of college students receive financial assistance from a grant, work-study program, or Federal student loan. However, due to rising college tuition, traditional financial aid doesnt always the expense.
http://www.worldbestloans.com/student-loans.htm
Federal student loans place limits on how disbursed money is used. However, a private student loan can pay for a variety of education-related expenses such as a laptop, rent, transportation, etc. While private student loans offer flexibility and quick processing, getting approved for such loans is no easy task.
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November 22nd, 2008 at 2:28 pm
Private student loans are not covered by bankruptcy
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I work for a private student loan company
November 22nd, 2008 at 2:33 pm