July 13, 2020

Volume X, Number 195

July 13, 2020

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July 10, 2020

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Primer: Student Loan Types and Payment Options

If you have an interest in student loans (as most of us do as parents or after law school), then you may want to check out the website of the United States Bankruptcy Court for the District of South Carolina. 

Partner Lisa Sumner, who formerly practiced law in South Carolina, worked with the Court to draft  a Student Loan Primer and flow chart providing basic information about federal student loan types and non-bankruptcy payment and forgiveness alternatives available throughout the United States.  The Primer and flow chart are posted:http://www.scb.uscourts.gov/studentloandebt.html   Here’s a preview of the Primer Contents:
I.             Types of Student Loans
A.            Federal Student Loans  
B.            Private Student Loans   
II.            Repayment Options for Federal Student Loans 
A.            Consolidation   
B.            Loan Rehabilitation        
C.            Standard             
D.            Graduated         
E.            Extended           
F.            Deferment or Forbearance        
G.           Income-Contingent Repayment Program (“ICR”)             
H.            Income-Based Repayment Plan (“IBR”)
I.             Pay as You Earn (PAYE) 
J.             Income-Sensitive Repayment Plan (ISRP)            
III.           Specialized Loan Forgiveness Programs and Non-Bankruptcy Discharges for Federal Student Loans               
A.            Total and Permanent Disability (TPD)     
B.            Public Service Loan Forgiveness Program for Direct Loans            
C.            Public Service Loan Forgiveness Program for Perkins Loans         
D.            Teacher Loan Forgiveness Program        
E.            False Certification Discharge      
F.            Unpaid Refund Discharge            
G.           Death Discharge              
H.            Military Service Discharge           
I.             September 11 Survivors Discharge          
J.             Closed School Discharge              
IV.          Bankruptcy Undue Hardship Discharge 
In addition, with the support of the Court, South Carolina Legal Services teamed up with American Student Assistance (ASA) to provide a free lifetime membership for South Carolina residents to www.saltmoney.org/SCLS.  This is a website that provides resources and guidance regarding student loan debt to its members.
© 2020 Poyner Spruill LLP. All rights reserved.National Law Review, Volume V, Number 199


About this Author

Lisa P. Sumner, Bankruptcy Litigation Attorney, Poyner Spruill Law Firm

Lisa practices in the areas of Bankruptcy and Commercial Litigation, and she is the Assistant Leader of our Financial Services Section. She is licensed and has practiced in the federal and state courts in North Carolina, South Carolina, and Virginia.

Representative Experience

  • Represent secured and unsecured creditors, including creditors’ committees, in bankruptcy court on contested matters such as cash collateral, DIP financing, claims objection and lien contests, stay relief, confirmation, and executory contracts

  • ...