I attained a student loan to cover two classes at an accredited university. I received approximately $10,000 from the US Dept of Education. Approximately $2,000 was applied to my tuition and the remainder, approx $8,000, was credited to my student account in cash.
I subsequently dropped both classes. Because I did not fulfill my requirements to receive financial aid, the university had to give the full $10,000 back to the Dept of Education.
Now as a result, I owe the $10,000 to the university, not the US Dept of Education.
My question is, since I owe the money for tuition and overage to the university... Is that debt now dischargeable in bankruptcy?