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Student loans are no longer dischargeable in any chapter of bankruptcy unless you can prove that repaying the loan creates an undue hardship on you or your family. Prior law allowed their discharge once they had been in pay status for 7 years. The law changed in the fall of 1998.

Proving hardship usually requires showing that you can't provide a minimum standard of living for yourself and your dependents if you have to repay the loan. Some courts will discharge part of the loan on a showing that repaying it all would be a hardship.

Student loans are sometimes unenforceable due to school closures, fraud, etc. Chapter 13 can provide a way to cure defaults on student loans, or to pay them off over the course of the plan.

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โˆ™ 2015-07-15 21:34:42
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Q: Can a Parent Plus Loan be wiped out in chapter 7?
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Related questions

Can a parent be approved for a federal parent plus loan in currently they are in a chapter 13?

Since PLUS loans are based on the parent's credit, most lenders will not pre-approve a parent that is in chapter 13. However, if the parents do apply and are denied a PLUS Loan, the student will then be eligible for additional unsubsidized Stafford Loan funds (currently as much as $4000.00 more per school year).


What is the purpose of a parent's Plus loan?

There are loans available that are for the purpose of helping parents pay the cost of putting a child through collage. The loan is called a Parent Plus Loan and the Parent Plus Loan website offers the ability to secure this type of loan for those that apply and are accepted for it.


Can you sue your child for your parent plus loan?

no


What is better a student loan or a parent plus loan?

Only a parent can apply for a parent loan. the payment plan for a student loan can be deferred until after graduation. It all depends on who is paying the loan off, the student or the parent


What are requirements for a Parent Plus Loan?

Parent's who are trying to help further their education may apply for a Parent Plus Loan. The foremost requirement is that you must have a child that is planning to attend school.


Is a parent plus loan tax deductible?

yes


Chapter 13 requires total unsecured debt of less than 335000 Is a Parent Plus student loan considered as a unsecured debt?

Yes.


If you file chapter 7 bankruptcy does that eliminate paying back the parent plus college loan?

Student loans are exempt from bankruptcy as are IRS debts


How do you Transfer a plus loan to child?

Parent didn't sign Masters Promissory note so it is technically not the parent's loan or responsibility right? Because of this, can a Direct PLUS loan get transferred to the child if a mistake was made in the loan process?


Can a parent plus loan be put in the student's name instead of the parent's?

A parent plus loan is exactally that. A loan for parents to help their children with college expenses and can only be given to parents under the parent's name. You also need to begin to repay that loan while your child is still in school, usually within 60 days.


How to Get a Parent PLUS Loan?

What is a Parent PLUS Loan?A Direct Parent PLUS Loan is a loan that is available for eligible parents of dependent students to pay for education expenses. A Parent PLUS Loan is available to cover the remaining amount of a student's cost of attendance after any other financial aid that the student is awarded. These loans are beneficial because of their relatively low and fixed interest rates of 7.9 percent. However, these loans do charge interest from the date that the first payment is disbursed until the loan is paid off.Who is Eligible for a Parent PLUS Loan?To be eligible to receive a Parent PLUS Loan, an individual must be either the student's biological parent or the adoptive parent. Some special cases allow for a student's stepparent to be eligible to receive a Parent PLUS Loan. The parent must meet certain credit history criteria, but a parent with a bad credit history is still eligible to receive the Parent PLUS Loan if a friend or family member co-signs for the loan. The student must be the Parent PLUS Loan receiver's dependent and enrolled in undergraduate school least half-time. Additionally, both the student and the parent need to be U.S. citizens or eligible permanent residents to qualify for the loan.How do you Apply for a Parent PLUS Loan?To apply for a Parent PLUS Loan, the parent needs to fill out a Direct PLUS Loan application. The parent also has to complete a Master Promissory Note, which is a legally-binding contract that requires the signer to repay the loan, interest and fees in full. A parent must submit a new loan request each year that the student requires funding for school, but the Master Promissory Note is typically sufficient for subsequent loans. The application and Master Promissory Note can be completed online at www.studentloans.gov. Once the department approves the loan, the payments are disbursed to the student's school. After the school has deducted the costs of tuition, room and board and any other charges, the school issues a check or direct deposit to the parent. The remaining funds must be used for purposes related to the student's schooling.


What is the average rate of a federal plus loan?

The average rate of a Federal Direct Parent Plus Loan and Federal Direct Plus Graduate Loan is now 7.9%. This rate is fixed for the life of the loan and cannot exceed 8.25%.

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