
Bankruptcy Courts Have Said These are
NOT
Student Loans
1.
Money owed to your school for past due tuition.
2.
A loan given by your school in the form of a tuition credit or free tuition.
3.
A private student loan from a for-profit entity to:​
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Attend a school that is not eligible to receive federal student aid funding under Title IV.
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Pay education expenses for someone who is not a dependent or your spouse at the time the loan was obtained.
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Pay education expenses for your boyfriend or girlfriend, even if you later marry that person.
​
4.
Credit card debts incurred to pay the costs of education.
5.
Home equity lines of credit and mortgage refinance to pay off student loans. A personal loan from a friend or family member, even if you use the money for education.
6.
​Loans given to students to cover living expenses during an internship, study for exams or reasons other than paying for classes at a recognized school.
WHAT IS AND WHAT IS NOT A STUDENT LOAN IN BANKRUPTCY COURT?
When you are thinking about getting rid of, discharging, your student loans in bankruptcy, you first have to know if you in fact have a student loan. Not every loan taken out and used for education is a student loan and not every debt you take on for school is a student loan. “Student loan” has a very spierici definition in the bankruptcy code, and if your debt does not “qualify” under that definition, it is not a student loan. It's probably just a regular old debt. The bankruptcy rule saying student loan are not discharged is an exception to the general rule, so the debt in question has to meet the definition.
A “student loan” is:
​
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An educational benefit overpayment or loan that was made, insured, or guaranteed by a governmental unit ; or
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An educational benefit overpayment or loan that was made under any program funded in whole or in part by a governmental unit or nonprofit institution; or
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An obligation to repay funds that you received as an educational benefit, scholarship, or stipend; or
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Any other educational loan that is considered a qualified education loan under the federal tax laws.