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So What Happens if I Did Not Use My Sallie Mae Loan to Pay for School But Used it for Other Things? – Margaret

By on March 16, 2010
So What Happens if I Did Not Use My Sallie Mae Loan to Pay for School But Used it for Other Things? – Margaret

“Dear Steve,

What if you took out a sallie mae loan and the money really did not go to higher education… only for odds and ends and surgery. Is it still considered a student loan in that situation. And if not, would it be best to file bankruptcy including this loan.

Margaret”

Dear Margaret,

Unfortunately this isn’t the first time I’ve heard this same situation. The problem is that you can use your Sallie Mae loan for anything that is school related and some people don’t. That doesn’t mean you then get to treat the loan in a way other than what was agreed to. The ultimate issue here is going to be the master loan documents you signed and the fact that student loans are not dischargeable in bankruptcy.

It’s still a student loan, even though you decided to use it for other things. I’m sorry I don’t have better news for you.

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

One Comment

  1. m buck

    March 16, 2010 at 11:41 am

    thanks steve…..

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