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  1. #1
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    Jan 2009
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    Default Validity of Promissory Note for Student Loan

    Can anyone tell me if a Promissory Note is valid for a Private Student Loan if the school failed to verify/certify the Note? The bottom portion of the Note, after the student's signature, calls for the school to certify by signing. If this is required in order for the Note to be valid, would there be a basis for a legal challenge? I am a Virginia resident but attended a New York school. Thanks in advance for your help.

  2. #2
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    Default Re: Validity of Promissory Note for Student Loan

    You got the money? Then, school certification or no, you'll be paying it back.

  3. #3
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    Jan 2009
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    Default Re: Validity of Promissory Note for Student Loan

    Thank you for your response. I don't understand what the purpose of the certification/validation would be for. Is it just for show or does it actually mean something? If it is just for show, then shouldn't it state something to the effect that the Note is valid with or without the certification/validation considering it is a legal document? It actually states that the Note MUST be certified/verified by the school. And yes, I got the money, but far, far less than I owe based on the usury tactics of private loan companies.

  4. #4

    Default Re: Validity of Promissory Note for Student Loan

    The promissory note is not necessary to prove that you entered into a contract in regards to the loan proceeds. It may be harder to win a case against you w/o a properly executed promissory note, but not impossible.

    However, if this was a private loan and the school did not certify that the loan proceeds would be used for "qualified education expenses," it may be dischargeable in bankruptcy. You need to look carefully at the terms of the loan and then the bankruptcy law to see how the loan may be treated in bankruptcy.

  5. #5
    Join Date
    Jan 2009
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    Default Re: Validity of Promissory Note for Student Loan

    Thank you for your response. I will surely look it over with a fine tooth comb. It is a private student loan - consolidated. I requested, and they sent, copies of the Notes creating the original debt and some are certified and some are not so I will further investigate, as per your suggestion. Thanks again.

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