Am I liable to pay back student loans even though they were used for living expenses and not for education costs?

Asked 7 months ago - Southfield, MI

I was laid off in 2009 and went to college which was paid for fully based on the Warren Act qualifications for workers who lost their job due to foreign competition. However, I accepted federal student loans that i needed for living expenses while out of work. Am I liable to pay back these loans even though they were not used to pay for college? Please let me know if there's a loophole here..Thank you

Attorney answers (3)

  1. John Mark Wilk

    Contributor Level 11

    Answered . The bad news - yes you are responsible to pay back you federal student loans no matter what you used the proceeds for. The good news - there are several programs available to people with federal student loans that will allow you to make the payments manageable. Depending on your employment you may even be eligible to have part or all of your student loan forgiven over time.

  2. Diane Marie Kay

    Contributor Level 13

    Answered . Yes you are responsible for paying back the loans. You accepted the money and used it. You are responsible.

  3. Randy Jay Harvey


    Contributor Level 16


    Lawyer agrees

    Answered . Yes. Further even if you were to file bankruptcy you can not avoid repaying the college loans because they are exempt from bankruptcy. Because the money was loaned as part of a government loan for education, it doesn't matter what you spent the money on it will still have to be repaid even if you file bankruptcy. You can discuss the situation with a bankruptcy attorney to determine if you have any special circumstances, but generally you are out of luck.
    I wish you well.

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Related Topics

Nondischargeable debt and student loans

Student loans cannot normally be discharged in bankruptcy. Unlike most other types of debt, student loans are nondischargeable--except in cases of hardship.

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