For anyone considering bankruptcy who has a student loan, it may sometimes seem pointless when tens of thousands of dollars are still owed for your education. The common knowledge is that student loans cannot be discharged in bankruptcy, and typically this statement is not challenged.

But what if it is possible that your Sallie Mae student loan could be discharged once you file for bankruptcy? Or what if you are paying on a loan after bankruptcy that should have been discharged? You may be surprised to find that there are certain criteria a Sallie Mae student loan can meet in order to be discharged.

It is important to note that not every Sallie Mae student loan will qualify for discharge after bankruptcy. However, there are some situations where loans should have been discharged but were not. Debt collection attempts may have been made to collect payments by certain students who took out a Sallie Mae student loan.

Possible Ways Your Sallie Mae Student Loan May Be Eligible for Discharge

Debtors who have a private Sallie Mae student loan at an educational institution that was not a Title IV school at the time the loan was issued should have had the loan immediately discharged upon bankruptcy.

Some examples of schools that may not have been eligible Title IV schools include art schools, trade schools, technical schools, tutorial or learning centers continuing education institutions and those that do not grant degrees, and more. Some private graduate and undergraduate loans also fall under this category, and in particular, a Sallie Mae student loan known as “Tuition Answer.”

Additionally, loans that were dispersed directly to students may be at least partially dischargeable. These are loans that do not require that students have enrollment verification before the loan was issued.

Also, if money for a loan is not able to be shown as a “qualified education expense,” it may also qualify to be discharged in bankruptcy.

Unfortunately, it is not entirely clear cut as to which loans do and do not qualify for discharge with bankruptcy, but it is clear that a blanket statement saying that no loans are eligible for discharge is a myth. Consulting with an experienced student loan debt attorney best option to fully understand the complicated rules surrounding this matter.

Debtor Rights under the Fair Debt Collection Practices Act

As a debtor, you have rights under the Fair Debt Collection Practices Act, or FDCPA. Debtors have protection against being the target of unfair tactics that some debt collectors employ. Some of these tactics include agencies contacting other people, such as family members, to collect the debt, frequent calls to the debtor, violations of consumer privacy, and improper reports to credit bureaus, among others.

If an agency like Sallie Mae attempts to unfairly collect on the Sallie Mae student loan, debtors may seek recourse by filing a lawsuit to recover statutory and actual damages, as well as other potential damages.

Taking Legal Action over Illegal Sallie Mae Student Loan Debt Collection Practices

If you believe you have been the victim of illegal or unfair Sallie Mae student loan debt collection practices after filing bankruptcy, you may be able to take legal action. An experienced student loan debt collection attorney can review your case at no charge and can provide you with a free consultation if you qualify.