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BKAnswerMan, Attorney
Category: Bankruptcy Law
Satisfied Customers: 25
Experience:  Experienced Bankruptcy Attorney that has represented over 1,000 clients in consumer bankruptcy proceedings.
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Im trying to find out the law as it pertains to perkins student

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Im trying to find out the law as it pertains to perkins student loans. In Sept 1989 I received a Perkins loan of I beleive 2000 per year for three years totaling 6000. I graduated in 1991 and made some payments however around decemebr of 1995 I got divorced I then filled a bankruptcy Chapter 7 in 1997 or 1998 not sure of excact year but included my perkins loan as well as several other loans. None of the creditors showed up at bankruptcy hearing so I assumed all loans were discharged. Never heard from any banks or creditors for the past 15 years, nor was there any reports of any loans owed on my credit reports. Now its 2012 and I requested a transcript from my school and was told they could not release my transcript because of an outstanding perking loan which was 6000 and is now 11000. Am i liable for this loan? Considering Bankruptcy law and statute of limitations please advise. Thank u
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  BKAnswerMan replied 4 years ago.
In 1978 when the bankruptcy code was enacted student loans became non-dischargeable in bankruptcy. The debt owed on your Perkins loans survived the bankruptcy. There is no statute of limitations on federal student loans; however, there is a statute of limitations on private student loans based on state law.
Customer: replied 4 years ago.
So I am liable to pay the full amount which is double initial amount. Am I still liable for interest and penalties even though no effort was made to collect ?
Expert:  BKAnswerMan replied 4 years ago.
Yes, unfortunately you are liable for both.
Customer: replied 4 years ago.
So can u not negotiate a discounted amount? Will they only accept full amount? Can they hold transcripts back till full amount paid because I don't have that kind of money. I need that transcript to get a job.
Expert:  BKAnswerMan replied 4 years ago.

It is a common practice for schools to withhold transcripts when you are in default on student loans and even encouraged by the Dept of Edu. Student loans are very rarely settled. You may want to talk to a student loan umbudsman and look into rehabilitating the loan to take it out of default status. Also, you may want to look at a Chapter 13 bk down the road, as you can modify the penalties and interest in some circumstances through a Chapter 13 plan.
Customer: replied 4 years ago.
Ok so if I get it out of default and make a payment plan will they have to release my transcript to me. Other wise catch 22 I can't pay if I don't Get a job and won't be able to pay without a job.
Expert:  BKAnswerMan replied 4 years ago.
you will need to talk to the school regarding their policy, but generally schools only hold transcripts while you are in default.
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