(06-28-2019, 01:54 PM)The Real Marty Wrote:

(06-28-2019, 11:51 AM)wrong_box Wrote: The problem with the government getting out of student loans is this...My cousin who I have a mutual distaste for, refinanced his government backed student loan with a private company. The private company paid off the goverment backed loan and issued a new loan. The new loan is not backed by the government and can be discharged through chapter 7 or 13 bankruptcy as un unsecured debt. One the original loan is paid, the original government backed loan is paid and the private loan company assumes an un secured loan like a credit card debt. I didnt believe it until he showed me the chapter 13 discharge papers showing all his unsecured debt gone like he never had it

I don't know how he would get away with something like that.  The company that assumed the loan must have required him to fill out an application showing that he was able to pay back the loan.   How did he manage to declare bankruptcy?

Ahhhh I think I see where you are comimg from...The private company BOUGHT the loan. They did not assume the loan. Much like debt collectors who buy debts the original debt is paid off and a new debt is made. In this case a private student loan refinancing company BOUGHT the loan, paid off the original creditor, and gave him a brand new loan which other than the promissory note becomes an unsecured loan

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