Legal Question in Bankruptcy in New York

I am currently a graduate student since August 2012. My Sallie Mae student loans are in-school deferment. I filed for chapter 7 bankruptcy in October 2012. Sallie Mae requires payments from the cosigner of two loans since the bankruptcy. Sallie Mae changed the loan status because they received a letter about my filing for bankruptcy and not to take payment from me. They stated it would be a legal problem if they sent notices for payments to me or accept payments from me. I stated that I am in school all loans should be under deferment not under collection status. They stated they want to protect themselves should I decide to leave school abruptly. I stated if I decided to leave school you could verify my status but I am in school. Just like they verify my status before submitting/approving a loan they can do the same. The student loans are not discharged or in current payment status. Sallie Mae disregards my deferment status and treats my loans as if they are in collection under the bankruptcy status. They state the cosigner will have to pay on the loans she has cosigned until the bankruptcy is posted. I started filing in Oct 2012, which was when they received the letter. The case was in Nov 2012 and the bankruptcy wont clear until Jan 2012 as I was informed.

Asked on 12/25/12, 9:08 pm

1 Answer from Attorneys

Nancy Delain Delain Law Office, PLLC
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0 attorneys agreed

Didn't your lawyer talk to you about this?

Sallie Mae is behaving appropriately in the circumstances. When your bankruptcy ends in either discharge or dismissal, they will come back to you for payment, which payment is currently in deferment; it is very difficult to get a student loan discharged and they know it. Meanwhile, your co-signer is not in school so the current-student deferment does not apply to them.

Pay your co-signer the monthly loan payment to send on to Sallie Mae from their account until Sallie Mae stops collecting from the co-signer. That way, your co-signer is not out any money because they were nice enough to co-sign your loan. Keep current with that payment to your co-signer; this is your Top Financial Priority at this moment. Non-payment of this loan affects THEIR credit. And remember: "Neither a borrower nor a lender be,/For loan oft loses both itself and friend...." Hamlet. You don't want to lose this friend.

THIS POST CONTAINS GENERAL INFORMATION AND IS INTENDED FOR ENTERTAINMENT PURPOSES ONLY. IT DOES NOT CONSTITUTE LEGAL ADVICE, NOR DOES IT CREATE ANY ATTORNEY-CLIENT RELATIONSHIP. FOR LEGAL ADVICE ON YOUR PARTICULAR MATTER, CONSULT YOUR ATTORNEY.

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Answered on 12/31/12, 2:44 pm

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