Quoted: Defaulting loans and HPSP

[Doodledog]

Posted for a member:

I have undergraduate loans and grad loans. i thought they get lumped together but they don't. I'm in default in one and defer for the other. I am in a program to fix the default but it takes until Oct 2010. So when i did fafsa it showed the default. I was commisioned jan for the army hpsp so I can still have school paid for and live off the bonus till the default clears. Can the army or the school kick me out?

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[andreano]

The US supreme court just ruled that it may be possible to discharge interest on s student loan. The ruling is limmited so consult a good bankruptcy attorney

 

[backrow]

I don't think they would kick you out of the program for this; however, (and this is could be huge) is that financial difficulties can prevent you from getting a security clearance which is required for all commissioned officers in all branches of the service.

I think if you are taking care of it in an approved and responsible way you will likely be okay.

 

[slowlybutshelly]

I had to pay for 2 US medical schools, so I am in default on a private loan by SallieMae. I am studying for Step2 now; and have no money for medical school interviews. I am curious about 'the program you are in to fix the default'? I would like to know about it.
I NEED to know about it. I should not have had to repeat the courses I did and I should not have had to get private medical loans. NO ONE should ever have to obtain private loans from SallieMae.

Part of SallieMae's problem is the restructuring of the banking industry. But I feel like I am a victim of that too.