I Filed Bankruptcy on My Sallie Mae Loan And It Says Insurance Paid. – Lori

“Dear Steve,

I receieved a student loan back in 1984 and in 2006 i filed bankruptcy. my papers say it was discharged but sally mae said i had to pay then they sent it on to nelnet..my credit report says it was insurance paid..what does that mean? what do i do ive been paying this thing forever.


Dear Lori,

I can see the one from 1994 being discharged but you’d really need to confirm it with either the current owner or your credit report showing it is listed as discharged in the bankruptcy.

Who is trying to collect this from you now? The company that insured your private loan or Sallie Mae?

I need some more information to give you a better answer.

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Damon Day - Pro Debt Coach

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