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How to discharge student loans in bankruptcy?

When you’re trying to discharge a student loan in bankruptcy, you need to know which student loans are dischargeable.  There’s a difference between a federal student loan, federal student loan serviced by a private student loan, and a private student loan?

A federal student loan is issued by the federal government and serviced by the federal government.  They have a lower interest rate and the federal government usually can forgive the balance of the loan if you are not able to make the payments. 

Now the federal student loans that are serviced by private lenders have been recalled by the federal government because the private servicer were not being flexible with the borrower with their payment plans.  Which also cause the borrower to default as well as taint the borrower credit.

The third type of student loan is from private lenders, such as Sallie Mae, Citibank, Wells Fargo, bank of America, and Navient, which is a subsidiary of Sallie Mae.  When these private lenders issue student loans they do not have the federal government protection, so those loans are treated like a regular personal loan.  Which also means that these lenders make up their own rules when issuing loan and collecting on them.  They can increase the interest rates, if you miss a payment, they’ll send you collections, file the insurance claim get your student loan paid off and then force you to may them too.

There is a lot of discussion about the role of Government in creating jobs in the United States. Some say that the Government should relax regulations so that private companies and small businesses can have more flexibility in creating jobs. Others argue that the Government should do more to create jobs in the various governmental entities.

But no one states the reality, and that reality is that much of the business that corporations and small businesses do is with the Government. A lot of it is local, much of it is state, and a great majority is with the federal government. Who is GM’s biggest customer? Who’s buying Boeing airplanes? Who’s the largest purchaser of Apple, Dell, and Hewlett Packard computers?

On the municipal level, contactors jump through all kinds of hoops to qualify for city street and sidewalk contracts. Auto dealers break their necks trying to get contracts for new police cars and city vehicles. Private trash haulers generally need contracts with municipalities to stay profitable.

The Small Business Administration, a federal government entity, provides resources for individuals to start or grow their small businesses. In 2011, the U.S. Government spent
$535 billion dollars in contracts with 23% of that total targeted towards small businesses.

Once a small business is up and running, for many, it is imperative that they are able to obtain contracts with local, state, and federal governments. Consider the rise in the number of small businesses providing health care to the elderly. Most of those businesses rely on payments from Medicaid and Social Security.

So the truth is that Government is the great sustainer of jobs in this country. Without government investment, both private and public sector jobs would dry up.

There is a lot of discussion about the role of Government in creating jobs in the United States. Some say that the Government should relax regulations so that private companies and small businesses can have more flexibility in creating jobs. Others argue that the Government should do more to create jobs in the various governmental entities. But no one states the reality, and that reality is that much of the business that corporations and small businesses do is with the Government. A lot of it is local, much of it is state, and a great majority is with the federal government. Who is GM’s biggest customer? Who’s buying Boeing airplanes? Who’s the largest purchaser of Apple, Dell, and Hewlett Packard computers? On the municipal level, contactors jump through all kinds of hoops to qualify for city street and sidewalk contracts. Auto dealers break their necks trying to get contracts for new police cars and city vehicles. Private trash haulers generally need contracts with municipalities to stay profitable. The Small Business Administration, a federal government entity, provides resources for individuals to start or grow their small businesses. In 2011, the U.S. Government spent $535 billion dollars in contracts with 23% of that total targeted towards small businesses. Once a small business is up and running, for many, it is imperative that they are able to obtain contracts with local, state, and federal governments. Consider the rise in the number of small businesses providing health care to the elderly. Most of those businesses rely on payments from Medicaid and Social Security. So the truth is that Government is the great sustainer of jobs in this country. Without government investment, both private and public sector jobs would dry up.