Why are private student loans not allowed to be written off?
Why are private student loans not allowed to be written off in chapter 7 bankruptcy? It seems to be the only loan type that isn’t.
Also, it’s the only one without statue of limitations. Seems to be alot of protection for these companies.
Tags: allowed, Loans, Private, Student, Student Loan, Written
They’re a secured debt because there is no collateral. They can’t take back your education if you don’t pay.
Laws changed because people took out huge student loans. Then upon graduation, file bankruptcy. Since they had the fancy degrees but no jobs or other income, all the student loans were written off. It happened so often, that lenders didn’t want to give out student loans anymore.
Your loan must be a SallieMae loan.Money owed to the government, taxes debt to VA. These debts cannot be included in a bankruptcy. There are probably even more that I missed listing.