Sucessful 'full payment' ch 13, now student loans coming after me

[terryeaton]

What is the name of your state (only U.S. law)? Tx

I went through a '100%' full payment plan for 5 years. At the beginning, great lakes student loan on behalf of the DOE said I owed a total of about 60,000 (keep in mind, I originally borrowed 30,000). After my 13 was discharges, they sent me a bill for 18,000 dollars. I sent them proof I paid the debt thru my plan. They came back and said I was charged 18,000 while IN my plan. Huh? I thought I was paying off my student loans.

Called my attorney, he looked up their proof of claim, said they filed it as general unsecured, and that the interest should not have accumulated, or we would have out thst in the plan and paid it too. The problem is, he's not sure how to proceed, whether to sue them, complain to the bankruptcy court, or what.

He's saying that if they wanted to charge interest they should have filed it as such. Also he said they left the interest percentage and a few other fields blank on their filing, which seems odd.

Anyone else seen this before?? Am I EVER going to be able to actually pay off my student loan debt??

 

[TigerD]

Student loan debt is only dischargeable after a showing of undue hardship - a difficult standard to attain.
Student loans are not unsecured - in a Chapter 13, they should be treated as a priority pay in full debt item. Your attorney should have known that when you completed your plan. My guess with the limited information is that there were errors in the plan that didn't get caught or corrected.

To answer your last question: You owe student loans until they are paid in full. Or you die.

TD

 

[OHRoadwarrior]

Excellent presentation TD.

 

[despritfreya]

I went through a '100%' full payment plan for 5 years. At the beginning, great lakes student loan on behalf of the DOE said I owed a total of about 60,000. . . After my 13 was discharges, they sent me a bill for 18,000 dollars.

Called my attorney, he looked up their proof of claim, said they filed it as general unsecured, and that the interest should not have accumulated. . . (H)e's not sure how to proceed. . . He's saying that if they wanted to charge interest they should have filed it as such. Also he said they left the interest percentage and a few other fields blank on their filing. . . Am I EVER going to be able to actually pay off my student loan debt??

I have some real problems with your attny. It is not up to the creditor to formulate the Chapter 13 Plan. It is up to the debtor. Your attny should have known that interest can and will accumulate on the non-discharged student loan. Your attny should have known that in a 100% Plan the debtor may provide for the payment of interest on such claims but such is not required. Regardless of what the POC filed by the creditor states, since payment of interest IS NOT mandatory (and, in fact, is prohibited unless dealing with a 100% Plan), it is up to the debtor to provide for such interest. Google 11 USC 1322(b)(10)

Go back to your attny and ask why he failed to include a provision in the Plan to pay interest (or, alternatively, an Espinosa provision discharging any interest accumulation). Remember, the Plan is formulated LONG BEFORE any creditor files a claim.

Des.

 

[terryeaton]

So, I paid every dime of the 60,000 I owed at the time of my plan, and I come out oweing another 18000. No wonder everyone is so up in arms over the student loan racket. They make up their own rules and can get away with anything pretty much. I borrowed 30k to go to school, and it's almost trippled, and that's if I paid the 18k today - by the time I pay that, that'll become 25 or so. It seems impossible to get done with these things. I have a friend in the same situation. Ridiculous.

Yeah, i distinctly remember my atty telling me to my face, interest freezes during a 13 on student loans. That was a BIG reason I filed a 13 to begin with.

Sigh.

 

[single317dad]

So, I paid every dime of the 60,000 I owed at the time of my plan, and I come out oweing another 18000. No wonder everyone is so up in arms over the student loan racket. They make up their own rules and can get away with anything pretty much.

No, that's not what happened at all. Though your interest seems a little high at a glance, this does not seem to be a case of unfair activity on the part of your creditor.

I borrowed 30k to go to school, and it's almost trippled, and that's if I paid the 18k today - by the time I pay that, that'll become 25 or so. It seems impossible to get done with these things. I have a friend in the same situation. Ridiculous.

It seems you both borrowed money -- the terms of which you were made fully aware of prior to receipt of the funds -- that you are now unable or unwilling to repay. That you actually did repay a large chunk of money is worthy of positive mention; that you think you're being "ripped off" when you agreed to the loan terms is not.

Yeah, i distinctly remember my atty telling me to my face, interest freezes during a 13 on student loans. That was a BIG reason I filed a 13 to begin with.

Sigh.

I think I'd start by talking to a different BK attorney.

 

[terryeaton]

No, that's not what happened at all. Though your interest seems a little high at a glance, this does not seem to be a case of unfair activity on the part of your creditor.

You're not going to get me to agree that borrowing 30k and having it turn into almost 90,000 is fair - at all. Especially after going through a bankruptcy where I paid the entire balance. And don't forget, alot of that amount "grew" from BULL**** fees, purhcases of the loan, unbelievable interest, government-backed crap that stays with you until you die. You can talk about this til you are blue in the face, but OBVIOUSLY I'm not the only one who finds the student loan RACKET to be ridiculous financial RAPING, considerikng that Obama and many other politicians are saying the same thing, and taking action to STOP this crap from happening in the first place.

YES I borrowed 30k to go to college to better myself AND THIS COUNTRY too, but there should be some "cap" when thier BS fees, penalties, interest, fees on fees, fees on purcahes and transfers and all that crap they just make up BECAUSE THEY CAN, stops. Example, I borrow 30k... my balance should NEVER, EVER, exceed 45k. If it hits that, it stops, cold, until it's paid. It doesn't grow to THREE TIMES what I originally borrowed. RIDICULOUS. THen we wonder why people pay their student loans their ENTIRE life.

So go somewhere else with your rhetoric. I'm not the only one that disagrees with you. I just hope they FIX this. Of course, by that time it will be too late to help me, but at least maybe it can help my son who just started college.

/rant

 

[Zigner]

You're not going to get me to agree that borrowing 30k and having it turn into almost 90,000 is fair - at all. Especially after going through a bankruptcy where I paid the entire balance. And don't forget, alot of that amount "grew" from BULL**** fees, purhcases of the loan, unbelievable interest, government-backed crap that stays with you until you die. You can talk about this til you are blue in the face, but OBVIOUSLY I'm not the only one who finds the student loan RACKET to be ridiculous financial RAPING, considerikng that Obama and many other politicians are saying the same thing, and taking action to STOP this crap from happening in the first place.

YES I borrowed 30k to go to college to better myself AND THIS COUNTRY too, but there should be some "cap" when thier BS fees, penalties, interest, fees on fees, fees on purcahes and transfers and all that crap they just make up BECAUSE THEY CAN, stops. Example, I borrow 30k... my balance should NEVER, EVER, exceed 45k. If it hits that, it stops, cold, until it's paid. It doesn't grow to THREE TIMES what I originally borrowed. RIDICULOUS. THen we wonder why people pay their student loans their ENTIRE life.

So go somewhere else with your rhetoric. I'm not the only one that disagrees with you. I just hope they FIX this. Of course, by that time it will be too late to help me, but at least maybe it can help my son who just started college.

/rant

...but it was all fine and dandy when you GOT the money.

 

[Proserpina]

You're not going to get me to agree that borrowing 30k and having it turn into almost 90,000 is fair - at all. Especially after going through a bankruptcy where I paid the entire balance. And don't forget, alot of that amount "grew" from BULL**** fees, purhcases of the loan, unbelievable interest, government-backed crap that stays with you until you die. You can talk about this til you are blue in the face, but OBVIOUSLY I'm not the only one who finds the student loan RACKET to be ridiculous financial RAPING, considerikng that Obama and many other politicians are saying the same thing, and taking action to STOP this crap from happening in the first place.

YES I borrowed 30k to go to college to better myself AND THIS COUNTRY too, but there should be some "cap" when thier BS fees, penalties, interest, fees on fees, fees on purcahes and transfers and all that crap they just make up BECAUSE THEY CAN, stops. Example, I borrow 30k... my balance should NEVER, EVER, exceed 45k. If it hits that, it stops, cold, until it's paid. It doesn't grow to THREE TIMES what I originally borrowed. RIDICULOUS. THen we wonder why people pay their student loans their ENTIRE life.

So go somewhere else with your rhetoric. I'm not the only one that disagrees with you. I just hope they FIX this. Of course, by that time it will be too late to help me, but at least maybe it can help my son who just started college.

/rant

Financial rape? No, hon. You wined and dined that loan, and then dumped it with nary a second thought.

Is it fair? I neither know nor care. But what I do know is that bandying around those terms willy nilly is not helping your credibility much.

 

[terryeaton]

...but it was all fine and dandy when you GOT the money.

Idiot. THat was LONG before they changed the rules on everyone with student loan reform and such. To quote Obama, "People shouldn't be penalized for wanting to go to college"

As usual, yours and "propsperina"'s comments are pure trolling garbage. Why are you guys even here? Complete morons.

And it's very easy for people who haven't been victimized by the student loan process to get up on a preacher's pulpit and shake their fingers.

 

[Zigner]

Idiot. THat was LONG before they changed the rules on everyone with student loan reform and such. To quote Obama, "People shouldn't be penalized for wanting to go to college"

As usual, yours and "propsperina"'s comments are pure trolling garbage. Why are you guys even here? Complete morons.

And it's very easy for people who haven't been victimized by the student loan process to get up on a preacher's pulpit and shake their fingers.

I must apologize. You definitely should seek a refund.

 

[single317dad]

OP should go get himself a mortgage and see how many times the original loan value THAT costs him.

 

[Proserpina]

I must apologize. You definitely should seek a refund.

I also apologize. I see your refund and raise you two chickens and wet pool noodle.

 

[TigerD]

Idiot. THat was LONG before they changed the rules on everyone with student loan reform and such. To quote Obama, "People shouldn't be penalized for wanting to go to college"

As usual, yours and "propsperina"'s comments are pure trolling garbage. Why are you guys even here? Complete morons.

And it's very easy for people who haven't been victimized by the student loan process to get up on a preacher's pulpit and shake their fingers.

You, sir, have some issues. First, you borrowed the money - you pay the money. No one has victimized by the student loan process - only weak willed fools think themselves victims when they sought out a loan, they read the contract, they took the money, they spent the money, and they failed to honor their commitment.

As for student loans - yeah, I have them. And mine were several multiples of your highest debt. I worked very hard. My student loans will be paid off completely in a few years. I could have paid them earlier, but I invested my money at a greater return than the loan interest. I'm not a victim.

You have an issue with your attorney that you need to work out. The "woe is me" card is silly, tired and rather humorous.

I will not return tit-for-tat with your personal attacks and call you an idiot or a complete moron because some truths are self evident and because that boorish behavior might violate the terms of service.

Good luck. Life is hard on victims.

TD

 

[terryeaton]

TD

Yeah you guys are right... it's "just me" I'm the ONLY one in America that feels the student loan industry is a RACKET targetting young people and ENSLAVING them in student loan deb their whole entire lives, EVEN when they pay SIXTY THOUSAND DOLLARS in student loan debt through a chapter 13 bankruptcy, only to see my original debt TRIPLE due to COMPOUNDED INTEREST ON INTEREST ON INTEREST ON INTEREST. Sure, it's real fair! Unlike a CAR LOAN which is simpl einterest and paid off in 5 to 6 years!!!

Yeah, Obama isn't trying to do something about this.

http://www.whitehouse.gov/issues/education/higher-education/ensuring-that-student-loans-are-affordable

Oh wait, I guess Obama is the only one, and he's a crack pot too...

http://time.com/3393630/elizabeth-warren-suze-orman-2016-student-debt/

“Private banks are financially raping—and I use that word truthfully—raping our children,” Orman said. “It’s ludicrous.”

Oh wait, I guess you guys are so much smarter than the president and all the politicians FIGHTING this racket!!

My bad!

IDIOTS.

You're right I DO have issues - issues with COMPOUNDED INTERST ON INTEREST ON INTEREST until I die, yeah I have a REAL issue with that!!