Feds "unequal" write-off loans - discrimination!?

[Gemini Pal]

Hello out there,

I did a post yesterday about 25 year old student loans (with the

Feds hounding me for life on that) and want to thank again those

of you who replied (and DBMCC - who I forget to thank yesterday).

There's another angle here I need help with.

In dealing with this matter over the last twenty years - I've come to learn that the Feds are involved in all kinds of loan programs - not just student loans (where the students are so often villified).

Can (and do?) the Feds “write-off” whatever kinds of loans (like SBA, FHA, and God knows what other loan programs they have – I’ve heard they even have loan and grant programs that help multi-billion dollar corporations) they want to write-off – but yet insist on collecting “student loans” (from the little guys like me) forever and ever?

If they could, it would seem really unfair – and quite unequal.

(I guess some of us (like me) do have fantasies of fighting their cases all the way to the Supreme Court… )

But (seriously) maybe if I had some evidence that this indeed does occur, it would certainly help my current situation - and help in attempting to reason with the Feds about settling this very, very old (now a quarter of a century old!) student loan debt that was supposed to have been discharged in BK 16 years ago.

As always, much appreciation in advance for any posts on this topic.

[Broke Chick]

Why in the heck are the Feds "hounding" you on these student loans? Sixteen years ago, student loans could be, and were, dischargeable in bankruptcy! The law changed to the current "NO you can't discharge Federally-guaranteed student loans, hahaha!" in 1998!

Or, did you fail to list the student loan debt in your BK schedules back then? That may be the problem...if so, they do have the right to come after you still. And, if they do still have that right to collect (they were not discharged), you will, most likely, have to "bend-over" and take it (pay them off). I'd check your old BK papers (you do have them, don't you?) to see if you did list them to be sure before continuing this battle, so you do not end up going off on the wrong foot in dealing with this.

BTW: No, it's not "fair" that Federally-guaranteed student loans are so aggressively collected, but other Federal loan programs are not so hotly pursued for repayment. BUT, the reason for this is that, in the past, highly-paid individuals (who coauld easily have paid off the loans they incurred) would file for BK protection so as to avoid repayment of those student loans, and too many others simply defaulted and "disappeared". Making Federally-guaranteed student loans a "Repay us-- or else we'll chase you forever until you do!" thing was the punishment toward all Federally-guaranteed student loan holders due to the "bad actors" of the past.

[Radio_Guy]

Hi Gemini Pal,

Welcome.

This was covered in another thread earlier today.

http://debt-consolidation-credit-repair-service.com/phpBB2/viewtopic.php?t=20477

Basically, Rich people (and tons of Government Employees and Officials) were blowing off Student Loans trying to get free college degrees, Masters Degrees even MD's and PhD's. The American Public found out and demanded that the Government stop this abuse of public monies.

[breathing_easier]

But I think what Gemini is asking is why doesn't the government pursue the collection of its other types of loans as voraciously as it does student loans.

[Radio_Guy]

Hi Breathing_Easier,

But I think what Gemini is asking is why doesn't the government pursue the collection of its other types of loans as voraciously as it does student loans.

I guess I wasn't clear. Because the public hasn't demanded the legislators do something about collecting on those other loan programs.

Don't forget, It was the Press that brought this problem out into the open. they stirred the pot which made the Average American demand that something be done about those deadbeat rich people scamming the US Taxpayer.

Best wishes,

[apricot]

Ugh. I'm so sorry to hear that so many people are having the same problems that I'm having with student loans.

The cost of college is so out of reach for so many people that they have to take out loans to finance their education (even people who work during college, as I did).

The cost of basic needs is pretty high these days (single family townhouses in my area are going for $400,000 and renting a 2 br apartment is at least $900.00 per month). Adding a several hundred dollar loan payment into the mix is pretty impossible for some.

Has anyone on the board successfully had loans discharged by the "volunteering" option (providing services for low-income families?). I'm wondering how much time is involved and what sort of "services" qualify.

Thanks,

Paula

[Radio_Guy]

apricot,

Ugh. I'm so sorry to hear that so many people are having the same problems that I'm having with student loans.

Make no mistake about it these people were not having problems with their student loans...

25% percent of the charged off student loans were from very wealthy people, Doctors, Lawyers making $150,000.00 + per year who were scamming the system.

They were nothing like you and me...

[jojo67]

Has anyone on the board successfully had loans discharged by the "volunteering" option (providing services for low-income families?). I'm wondering how much time is involved and what sort of "services" qualify.

Thanks,

Paula

I have, but I'm dissabled, and was able to take advantage of total dissability, took a doctor's signature, and filling the form out twice, but was well worth it for me. That's $10,000 I don't have to pay back....(The original loans were 5,400) so the fees doubled for me.

[LadynRed]

Sixteen years ago, student loans could be, and were, dischargeable in bankruptcy!

True- BUT, only under certain circumstances ! There were still many conditions that HAD to be met in order for the old pre-98 loans to be dischargeable, it was hardly 'easy'.

People with pre-98 bankruptcies including student loans are finding themselves still hounded by the loan collectors and sometimes the Feds, and STILL not able to PROVE that the loans were discharged. The courts are unwilling to go back in time and most people, sadly, do NOT keep adequate records to make their case today.