Can Federal student loans issued by the government survive bankruptcy?

Question

If u took out a huge loan to attend a school and the school turns out to be a scam trade school can u declair bankrutpcy ? If too much time has passed to file any suits under the statues of limitations, etc...Will the loans survive?

Answer 1

Any federal student loans are non-dischargable by bankruptcy. If they are not federal loans, they CAN be discharged. If this school was a legitimate scam, you may want to seek legal help to rid yourself of the waste of money.

Answer 2

Federal loans will.
Contacting the department that issued the loan is the first and best action. It could be the best route. If information is given to them pertaining to the "scam" school they may have other alternatives for you.
To back your views, check to see if action has been taken against said school. It could be possible if they were using federal money fraudulently charges may have been filed.
This may be a way to see if the loan money can be returned thru class actions.

Answer 3

Government backed student loans can not be discharged by bankruptcy. They are one of three things that are exempt. The other two are tax liens and child support.

If however you have proof that the school was a fraud, you may be able to have them removed. If any action was taken by the government against the school.

There is no statute of limitations on government backed student loans.

Answer 4

The loans are not ISSUED by the government. They are issued by private banks and GUARANTEED by the government. If you default, the government pays off the loans and then comes after you. Debt to the government is not bankrupt-able.