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Were My Student Loans Eliminated in My Bankruptcy? – Erika

“Dear Steve,

I obtained a Private Student Loan through Loan to Learn (Educap, inc. 5Star bank) in 2004 for $30,000 that required payment towards a variable interest rate while in school. I have paid on time from 2004-2012 before facing a hardship.

With an average monthly payment of $300 (sometimes higher, sometimes lower) I have paid well over $25,000. I asked for assistance before i stopped paying and was told that the company was no longer in business that they were finishing out their current loans. Along with this loan I have accumulated several Federal Student loans. I have yet to graduate due to these hardships.

I recently filed a Chapter 7 Bankruptcy and I received my bankruptcy discharge papers, hoping that the private student loan would be discharged as well. Unfortunately I am now being sued by the Private Student Loan, Loan to Learn. What can I do?

In researching your site, would I qualify for an adversary proceeding? The private loan was used for other things other than educational expenses such as living, rent, etc. Is that considered for it being discharged?

My student loans were never considered in my monthly debt during bankruptcy. Without the student loans we were already in the negatives, so adding the student loans it would impose an additional hardship on my family. Please help!


Dear Erika,

The issue about the private student loan and bankruptcy hinges on two things. The easier issue is if the school you went to was accredited. If not the private student loans should be discharged because of this.

Just because they were listed in your bankruptcy does not mean they would be routinely dismissed without some additional action on the part of your bankruptcy attorney.

You’d have to ask them if they challenged the loans or not as part of the bankruptcy.

The second issue is if the dead loans are even collectible or not because the current loan holder may not have the appropriate documentation to collect on the loans. This would be best addressed by a consumer attorney who could help to verify the debt. If you don’t know of a local attorney you can look for one on

A lesser solution would be for you to try and verify the debt yourself. You can find out the type of information and request the CFPB says to send, here.

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

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About Steve Rhode

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.

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