Question:
Dear Steve,
I co-signed for my daughters school loan. Private and government loans. I went bankrupt in 2009 and lost everything my home everything. Sallie Mae had the loans at the time. I sent certified to ask for Hardship forgiveness and all the loans were named in BK. Under to law that I see from your pages there are several reasons why I should have been released from those loans.
1. Bankruptcy with hardship.
2. I have since 2015 am under Social Security Disability.
3. The Big one is I’m pretty sure that IADT, which was International Academy of Design and Technology was not an Accredited School and may also Fall under the issue of the school back in 2007 the school was not Title IV eligible, and the loan could not be a qualified education loan. Now my daughter and I are be horribly being harassed by Navient. I need to make sure before my daughter is forced to go BK that she has a lawyer that is well versed in this information
My Questions are.
1. Where exactly on the Department of Education can I look if IADT was accredited for that year.
2. If I show them my Bankruptcy and letter to Sallie Mae will that give enough proof to Navient to leave me alone.
3. Can you give us a good lawyers name for the state of Washington who is well versed in the information you have stated.
4 The last and most important is I have read over and over again the area where you talk about why The Misinterpretation of 11 U.S.C. 523(a)(8) I am so confused. Can you put this at all in layman’s terms when you talk. I just want to be able to site this info to a lawyer.
5. I would also like to know if there is any statute of limitation at least for me as the co-signer now that I am on Social Security Disability.
Donna
Dear Donna,
Please see my answers below.
1. A: It appears the school was accredited in 2007, at least on October 9, 2007. There is a saved copy of the school page from that date that mentions they are FAFSA approved.
2. A: No. Through your bankruptcy you would have had to file an additional suit against the lender for determination on discharge. The procedure is called an Adversary Proceeding. Otherwise the lenders, private and federal, are going to claim your obligation for loans was not discharged.
3. A: You can look here and see if these attorneys can help you.
4. A: You should give them these articles to review.
5. A: For the private loans it would be based on the state Statute of Limitations and has nothing to do with disability. However, the private lender may have a disability discharge process. The federal loans might be able to release you based on your disability. See this site. According to the Department of Education, “If the endorser becomes totally and permanently disabled and he or she becomes liable for repayment on the PLUS Loan, the endorser may be released
from the obligation to repay the debt. However, the amount of the debt does not change. The borrower remains responsible for the entire PLUS Loan.” – Source
