Student loan question

doctorbighands · #1 (**permalink**) 03-04-2009, 11:44 PM

Hello,

I've been watching the stock activity of SLM Corp, better known as Sallie Mae. The outlook seems to be very poor - their stock has been plummeting. I have quite a bit of student debt with them right now, and so I was wondering: If the trend continues and they go bankrupt, what happens to my student loans?

Maria · #2 (**permalink**) 03-23-2009, 10:08 AM

Students loan are considered assets of Sallie Mae, as such, if they go bankrupt the assets will be assign to the other institution. This will be determined by bankruptcy court and it will not affect the status of your student loan. You will still be liable for the balance, you may be sending your payments to a different servicer but you should count on making those payments as you do today.

TheZ · #3 (**permalink**) 05-26-2009, 06:52 PM

great advice

Fay · #4 (**permalink**) 08-14-2009, 03:48 PM

but not what you wanted to hear, right?

sapphirecapital · #5 (**permalink**) 08-14-2009, 05:53 PM

but you may be able to make a deal with them

ezl123 · #6 (**permalink**) 09-08-2009, 09:03 PM

Quote:

Students loan are considered assets of Sallie Mae, as such, if they go bankrupt the assets will be assign to the other institution. This will be determined by bankruptcy court and it will not affect the status of your student loan. You will still be liable for the balance, you may be sending your payments to a different servicer but you should count on making those payments as you do today.

Spot on. This is exactly what I would say.

Vytautas · #7 (**permalink**) 09-30-2009, 06:01 PM

It's still an asset to the company and there is 0% chance that you will be able to drop the loans. The best you can hope for is that the assets are sold at a discount and you can try to bid down your own loan because they want to liquidate, but don't count on it.

Ryan6 · #8 (**permalink**) 10-01-2009, 10:13 AM

Yes, I think the debt would just be passed on somewhere else.

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