Question by Alan: Are Chase Student Loans considered Unsecured Debt or Secured Debt?
I applied for “student” loans through Chase/ JP Morgan and I was wondering if those are unsecured or secured. They are not my stafford or plus loans, these were private loans taken out to pay for “other” school expenses. I wondering if they are unsecured debt so they can be eliminated by bankruptcy.
Best answer:
Answer by Suzanne Rides
They’re unsecured debt. Secured debt is when you have realllly bad credit and the bank holds a deposit for the amount of your credit line.
I hear it’s real hard to get rid of student loans. I don’t think you can…unless you become a teacher and they’re forgiven…you’ll be stuck paying them.
What do you think? Answer below!
Neither federal nor private student loans are dis-chargeable through bankruptcy… sorry.
If you are having to resort to the evil Sub-Prime, private, variable interest rate student loans to pay for your school, you might want to have a talk with your cosigner to make sure they are willing to co-sign for you all 4 years of your college education. I’ve seen parents/co-signers be willing to do it once or twice, but by the time the kid is a senior they become unwilling. That or their debt-to-income finally gets too high their credit scores tumble and are no longer “credit worthy” cosigners and get decline. That would suck, you a senior with a year to go and no one to sign for you any longer.
The laws that define and regulate student loans are different than normal debt.
http://higheredwatch.newamerica.net/blogs/education_policy/2007/05/private_loan_bankruptcy
unsecured debt is always good . ==============================