any attorneys here?

[prison/con.net]

My nephew is hitting on me to co-sign a sallie mae student loan for him. I refused, but I told him I'd ask around to see if he can be helped. He took out a 6.5 k student loan, but withdrew before the 2 week period ended ( After 2 weeks it requires a 'w" grade on his transcript, I gather) Ok, the college repaid the feds, and now the college insists on being paid 7k (interest) this debt goes into collections in Sept of 2015. Can he take a bankruptcy on it? In my opinion, it's not a student loan anymore, it's a direct personal debt to the college, so he should be able to get bankruptcy relief. If it was still a federal student loan, he'd be ok. there would be no legal action until he's out of college. it would have been "rolled into" his other student loans and deferred.

 

[Bible_Belt]

So the school expects to get paid $7,000 for educating him for less than two weeks? That's quite a windfall for them.

I think you're right. The school would have to produce a signed promissory note to prove that the money was a loan. Now, that's not to say that in all the forms they make students sign, there is not something that they would claim would meet that obligation.

The school may have been very up-front about the terms that they expect a full semester's payment for two weeks of classes. They probably were.

If he doesn't pay them, the school won't let him enroll again with Fed loans, and if he has any credits there, they won't release his transcripts.

If it is a state school, you might also run into issues of the money being owed to the government and not a private company, which will complicate getting it discharged through bankruptcy.

So I think you raise a good point, but he's fvcked anyway. In the school's defense, I'm sure they warned him ahead of time, at least on paper.

 

[prison/con.net]

are there any other sources of money for students? He's got 7k for a new semester waiting on him, from the feds, but he can't get it until he pays off the current semester. I'm not willing to go out on a limb for him that much. I had not heard from him in years. I live in ILL, he's in OK