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  1. #1

    Default Can You Discharge a Teri Private Student Loan in Bankruptcy

    I have been in default on my TERI student loan for the past year and am considering filing bankruptcy due and was wondering if this could be included. I heard that TERI filed for chapter 11 in April 08 and as far as I know this case is still open...since they are in a BK will this help out my case and make it easier to get a discharge? Some threads have said that private student loans cannot be discharged but to me that makes no sense....this loan is nothing like a federal student loan, it has a variable interest rate, and the check was made out in my name and deposited into my own bank account unlike regular student loans which are dispersed to your school. I also was able to use the funds for living expenses which is not allowed with typical student loans in which only the cost of tuition can be taken out. It wasn't even certified by my school all I had to do was show proof of enrollment. Anyways any help would be appreciated I don't know where to turn for advice and definitely do not have the money needed to consult a lawyer.

  2. #2
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Can You Discharge a Teri Private Student Loan in Bankruptcy

    You didn't give us the name of your state as requested when you post.

    However, generally student loans cannot be discharged in bankruptcy.

    Private Student Loans
    USC TITLE 11 > CHAPTER 5 > SUBCHAPTER II > 523

    (a) A discharge under section 727, 1141, 1228 (a), 1228 (b), or 1328 (b) of this title does not discharge an individual debtor from any debt- ...

    (8) unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor's dependents, for-

    (A) (i) an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution; or
    (ii) an obligation to repay funds received as an educational benefit, scholarship, or stipend; or

    (B) any other educational loan that is a qualified education loan, as defined in section 221(d)(1) of the Internal Revenue Code of 1986, incurred by a debtor who is an individual. ( This was added in 2003 & includes all student loans (including private student loans) that were taken to attend a college or university in the US. )

    Your best bet is to talk to a bankruptcy attorney. You can usually get an initial consultation for free.
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