I have about 105,000 in private student loan debt. With my payments starting to be the full amount, im not sure what i can do. Does the new bankruptcy laws protect the private student loan debt from being discharged even though they aren't federal loans? Thanks for any help. Any suggestions will be great.

Dabidosan

Ha. Miranda's attorney sucks or simply doesn't know how to file an bankruptcy. You can file bankruptcy on your non federal student loans! There is an alternative but either way your going to drag your credit throught the ringer! Don't pay! There I said it. I can't believe it but I said it. You can't be garnished in the state of Tx (so dont' move for the next 7-10 years). And don't make any payments to any of the holders for next 7-10 years. anytime you make a payment you eliminate the statute of limitations and start all over again. NOW seeing that your loan is so much i can assume that you have or are looking to get a professional license? Here's the downer - they can't come after your paycheck but they can take your license. Also the loan is going to passed from agency to agency until the statute runs out. That means non stop calls until you send each agency a do not call request.

Miranda

Well, in the state I live in, wages can be garnished. If you do not pay your student loans, they will get a judgement and attach any checking or savings accounts. They will get their money eventually, and when they do, you will owe way more than 105k. I wouldn't mess with them. Also, the loan will be passed from agency to agency forever. Not just until the statue runs out. Once the statue runs out, if they haven't already gotten a judgement, they can no longer sue. However, they can still call and send letters all they want. They will definitely get a judgement on that large of an amount though.

Iknowalotofstuff

Lowtax4eva made a comment about Canadian Bankruptcy and private student loans that was unfortunately incorrect. S. 178 of Canada's Bankruptcy and Insolvency Act states that only government student loans or loans guaranteed by the government are not subject to discharge unless the student has been out of school for 10 years. Private student loans are treated as any other unsecured debt provable in bankruptcy and are dischargeable.