Student Loan Discharge?

[velodiva]

Hello,
I am currently looking into an ability to benefit discharge of my student loan. Student loan was from attending a vocational school from 1990-1991. I have proof that I did not have a high school diploma or GED. I also know I was not given an ability to benefit test, although I do not have proof. I was never asked for diploma or GED proof and was admitted with a guesstimate of my income according to them, so I would qualify for Title IV financial aid. The school has no record of my attendance. I have contacted every agency that may have my records, but have only found my original promissory notes and consolidation promissory note. My information on NSLDS shows I did not attend and also shows a school I did not attend (a different campus). From what I have researched, the guaranty agency and accrediting agency (who I contacted and have confirmed they have NO info on me), have the burden of proof according to a Dear Colleague letter.
So my questions is, before I start down this road, is there anything else I might be able to provide to help my case? Is there a chance of a discharge?
Any help in this matter would be appreciated.

[StudentLoansEscape]

Originally Posted by velodiva

Hello,
I am currently looking into an ability to benefit discharge of my student loan. Student loan was from attending a vocational school from 1990-1991. I have proof that I did not have a high school diploma or GED. I also know I was not given an ability to benefit test, although I do not have proof. I was never asked for diploma or GED proof and was admitted with a guesstimate of my income according to them, so I would qualify for Title IV financial aid. The school has no record of my attendance. I have contacted every agency that may have my records, but have only found my original promissory notes and consolidation promissory note. My information on NSLDS shows I did not attend and also shows a school I did not attend (a different campus). From what I have researched, the guaranty agency and accrediting agency (who I contacted and have confirmed they have NO info on me), have the burden of proof according to a Dear Colleague letter.
So my questions is, before I start down this road, is there anything else I might be able to provide to help my case? Is there a chance of a discharge?
Any help in this matter would be appreciated.

Can you please confirm if its a private loan and how far the loan is in delinquency.
Let me put what I think are the best of the options available to you.

1. If you are willing to take the settlement route(which I dont think you would prefer),you can erase the debt by paying half of the amount owed to the finance company.
or
2. You can take them to court.

I think taking them to court is a better option if you are sure the loan doesnt belong to you.

[velodiva]

Thanks for the reply, BUT I am actually looking into having the loan discharged for false certification of ability to benefit. I have been doing some research, but not sure on how to proceed... but if anyone has had any experience with this, or know of someone who has, any info would be appreciated. And the loans were not private, but DOE issued. I hope someone out there might be able to help me.... anyone?

[LynnInMN]

The key here is vocational school. Most do not require a GED or HS diploma. With most vocational programs, the ability to benefit is implied....you can learn a trade. They are generally not academic programs.

Did you complete the program? Drop out?

[velodiva]

This was a junior college. And from what I understand, the GED and HS diploma are required by FFLEP to receive federal loans. So a loan could not be issued if the requirement was not met. I did not meet that requirement at the time and it was not enforced. No questions or notes on application of graduation eligibility.

[LynnInMN]

Nope..there is no requirement to have a GED or HS diploma to get a stafford loan.

What was the requirement of the school? Did you disclose to them that you did not have the requirements? From my general google search, some jr colleges do not require either , only that you be 18 years or older. Courses at jr colleges are very basic. Were you enroll in a trade program or just a general diploma program?

[velodiva]

You are correct. That requirement was not established until periods of enrollment beginning after July 1, 1991. BUT from July 1, 1987 until then, schools were required to use one of the following for admission of students without a GED or HS diploma:

1. Student received a GED prior to student's completion or by end of first academic school year (which I did not)
2. Student was counseled prior to admission and successfully completed the schools remedial education program (was not offered)
3. The student passed a nationally recognized ATB test, and failing that, completed the the school's remedial program that did not exceed one academic school year (which I did not)

So based on the above requirements, I meet the criteria... and based on the above, my eligibility to borrow was falsely certified.

And yes, all this was disclosed at that time...

[velodiva]

So it turns out I was right!

[Beergoggles]

If it is government issued it will be there forever. Even a bankruptcy will not remove it. At least that's how I understand it.

[velodiva]

The Student Loan Law in regards to my discharge reads as follows:

If you received a Federal Direct or a FFEL Program Loan on or after January 1, 1986, you may qualify for a False Certification discharge if you (or the student for whom a parent received a PLUS loan) to receive the loan was falsely certified by an eligible school.

Your eligibility to borrow is considered to have been falsely certified if the school:

* Admitted you on the basis of ability to benefit from its training and you did not meet the applicable requirements for admission on the basis of ability to benefit; or

If your loan is discharged, you will not owe any more payments on the loan, and you will get a refund of payments you have made in the past. Also, if the loan is discharged, the servicing agency will tell credit reporting agencies that the loan was discharged, and any adverse credit history resulting from nonpayment of the discharged loan will be deleted. In addition, your discharged loan will not prevent you from applying for federal student financial aid.

The full criteria by which borrowers may qualify for such a discharge are set forth in Department of Education regulations 34 C.F.R. 682.402(e) (1994).

[jq26]

Originally Posted by velodiva

So it turns out I was right!

Right about what exactly? Did you receive an administrative discharge?

[victoria stiles]

Student loans are one of the most difficult type of loans to get discharged in a bankruptcy. If you owe student loans, bankruptcy will not provide you with much help.

[flacorps]

Student loan discharge is currently the subject of efforts by a number of activists, among them Alan Collinge of studentloanjustice.org

[velodiva]

Yes, studentloanjustice.org was a great help in dealing with the DOE, and also in researching information in regards to my particular discharge request. And, you are correct, bankruptcy does not allow a full discharge of student loans (if at all), but in my case, it was a false certification discharge request.

[life is good]

Velodiva;
i just finished a rehabilitation on my student loans... it ended in Nov.2011...In Dec. 2011, I recieved a "state tax lien" on my public records report.
This could stay on my record for 10 years!!!!
I am dealing with this from student loans back in 1987...and the reason why they aren't paid off yet is because of, though the principal may be have well paid for, all the fees, compounding interests, etc.....
I am happy to have learned of this student loan site from your thread- thanks~
If you have read some good threads regarding this, may you please direct me to them?? I am gonna be paying this off for the rest of my life ..

[velodiva]

Unfortunately, my research was primarily based on the False Certification aspect of the student loan discharge, but the website below was very helpful in pointing me in the right direction. Hope it helps...

studentloanborrowerassistance.org

[aaliasmith]

Student loans are hard , but not impossible, to discharge in bankruptcy. To do this you can show off that payment of the debt will impose an undue hardship on you .

[flacorps]

Originally Posted by aaliasmith

Student loans are hard , but not impossible, to discharge in bankruptcy. To do this you can show off that payment of the debt will impose an undue hardship on you .

The Brunner test is very hard to meet. You've got to be a demented quadriplegic or something.