I got suckered into a month long school that promised a job as a finance manager at a dealership upon graduation. They had all kinds of people working there with a background in dealership management, so I never thought to ask an F&I manager. Once I graduated, I walked into a dealership to apply, and they laughed at me. I was stuck with a $16,000 loan and no job and had to default. Now that loan has become 30k.
My loan was originally 16k and now has become 30k. I read your article about getting student loans discharged. I wanted to ask you a question. Out of the $16,000 I borrowed for the school, about $6,000 was for personal use (i.e., pay rent and feed my family while at school).
If the student loan is discharged in the bankruptcy, will they discharge the full amount or just the amount that was used for school? If it’s only for school use, what will happen to the additional 6k that was borrowed for living expenses.
It sure sounds like you got royally screwed. But if there is any good news here it is the loans could be fully discharged in bankruptcy. You see, I doubt the school was eligible for federal student loans so it was probably a private student loan you were saddled with.
If the school was not an “eligible educational institution,” which I doubt it was, then the private student loan would not be protected from being discharged in a consumer bankruptcy. Moreover, the amount of the loan that was not used for “qualified higher education expenses” would also not be protected, regardless of the status of the school.
More details on getting the loans discharged and definitions of these terms can be found in These Private Student Loans Can Be Easily Discharged in Bankruptcy.
I think you need to meet with a few local bankruptcy attorneys and find one who has experience in dealing with private student loans. Feel free to give them a link to this article for some background information.