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Sallie Mae Student Loan Discharged Under Bankruptcy But I’m Paying It. – Lori

Written by Steve Rhode

“Dear Steve,

Here is a copy of my credit says discharged and then says under creditors comments debt being paid by insurance..that is false i have been paying on this..what do i do


Dear Lori,

Thank you for including a copy of the page from your credit report showing the account. It appears you filed a chapter 7 bankruptcy in 2002 or was it 2005? Regardless the private student loan would have been discharged in your bankruptcy back then.

What are you paying on now for it? And why?

It is true that private student loan lenders do have insurance policies that pay off in the case of default. And the insurance companies may pursue the consumer for reimbursement. But in your case, if your student loan was legally discharged in your bankruptcy at that time, your obligation for the loan would have ended back then. There would be no need to make any payments on that debt.

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


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About the author

Steve Rhode

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.


  • My bankruptcy was discharged on 8/27/12. My credit report shows that my Sallie Mae educational loan was discharged. However, I am a co signer on the account. Am I still responsible for the payments? Should I stop making payment? My ex husband has never made a payment on this account.

    • It is doubtful that the loan was discharged. However, your responsibility for the loan may have been. Unless the loan was outside the statute of limitations it would not be discharged by the bankruptcy. Talk to your bankruptcy attorney.

  • This is very interesting. I was told that when I filed my BK on 8/2/12 that my Sallie Mae student loans would not be included. Now I just got a credit report update stating they’ve close my four loan accounts and I have a $0 balance for student loans. Does this mean I’m not going to be liable?

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