I took out a federal direct student loan for several semesters at a college. I signed a promissory note directly with the federal government. Three semesters later, I received my loan payments but opted to leave school several weeks early for personal reasons. The school considered that I forfeited the money and charged me. I was billed once on my federal loans then back charged by the school ( So I was charged 2x). I filed for Chapter 7 and know the federal loans are not going to be discharged. The collection company ( or the back charge)keeps sending me letters and saying it's a student loan and cannot be discharged. Is this true? I never signed a promissory note with them and my lawyer only listed the federal loans as 'non-dischargeable'.
**Typo sorry!)The collection company ( for the back charge)keeps sending me letters and saying it's a student loan and cannot be discharged.
Certainly, you are not liable twice. It needs to be determined whether the federal insured student loan proceeds were paid to the school - in which case you owe the debt to the lending agency ( and probably not dischargable on the facts given) or if the lender has not paid the school then you owe the school and this debt may be dischargable as a general unsecured debt.
Its a little unclear to me, but if what you are saying is that you took and spent the loan proceeds on something other than school - then you may have a non-dischargable debt to the lender and a dischargable debt to the school.
Consult your BK counsel with your concerns and examine the creditors proof of claims.
I am a licensed attorney in CA only. This is for general discussion purposes only and is NOT LEGAL ADVICE.
Personal Injury Lawyer
You really need to determine who the collection company is representing. If they represent the lender and they did in fact pay the school, then it sounds like you would owe the student loan. If for some reason the lender never paid the school, then you would owe the school ( i think this is less like because the school would have been paid early on - not when the semester was almost over).