If you’re considering bankruptcy
It’s important to understand that many student loans are not discharged through bankruptcy, but an automatic stay is imposed when any bankruptcy is filed. The effect of the automatic stay and what we do depends on which type of bankruptcy is filed.
- If a Chapter 12 or 13 bankruptcy is filed, we suspend online access and communications, including billing statements, for both the borrower and the cosigner.
- If a Chapter 7 or 11 bankruptcy is filed by the borrower or cosigner (but not both parties), we suspend online access and communications for only the person who filed the bankruptcy.
In all cases, interest continues to accrue during the bankruptcy case, which is likely to increase the Total Loan Cost. After the automatic stay ends, servicing, collection efforts, online access, and all communications will resume if the student loan is not discharged. In cases where a loan is discharged, we remove the filing party from responsibility for the loan. The non-filing party remains responsible for the loan, no matter which type of bankruptcy is filed. If you have questions about the treatment of your student loan in bankruptcy, please consult with an attorney.
If you’re experiencing financial difficulty, please chat with us or call 800-472-5543 so we can discuss any options that may be available for your loan.