During bankruptcy, your student loans do not go away
Bankruptcy can protect you from collection efforts, wage garnishment and the withholding of your tax refund and government payments, but it does not eliminate your student loan debt.
In fact, interest continues to accrue on your student loan balance while you’re in bankruptcy, increasing the total amount you owe.
Here are things you can do to stay on top of your loans during bankruptcy:
Determine who holds your student loans
If you filed for bankruptcy, your lender may no longer “hold” your student loans. ECMC is the nation’s primary servicer of student loans in bankruptcy, which means we probably hold your loans.
If ECMC holds your loans, you can log in to view your loan information. If you don’t know who your loan holder is, go to the National Student Loan Data System (NSLDS), which is the central database for all federal student loan information.
Back to topMake payments during bankruptcy
You are not required to make regular monthly payments on your student loans during the bankruptcy process unless you have provided for direct payment outside of your Chapter 13 plan. But the interest on your student loans will continue to accrue while you're in bankruptcy. Then when you emerge from bankruptcy, you will be responsible for any remaining student loan balance.
If you are in a Chapter 13 plan and your student loan is included in your plan payment, ask your attorney or the trustee how much of your plan payment will be paid on your student loans. See if it's possible to categorize the student loan debt to make interest-only payments or confirm that you may make voluntary payments outside the Chapter 13 plan.
To give you an idea of how interest on your student loans grows while you're in bankruptcy, this chart shows the loan balance and total accrued interest after 1, 3 and 5 years. The interest rate in all scenarios is 7%.
| Accrued interest on student loans during bankruptcy | |||
|---|---|---|---|
| Loan balance | Accrued interest after 1 year | Accrued interest after 3 years | Accrued interest after 5 years |
| $5,000 | $350 | $1,050 | $1,750 |
| $10,000 | $700 | $2,100 | $3,500 |
| $15,000 | $1,050 | $3,150 | $5,250 |
| $20,000 | $1,400 | $4,200 | $7,000 |
| $25,000 | $1,750 | $5,250 | $8,750 |
| $30,000 | $2,100 | $6,300 | $10,500 |
| $35,000 | $2,450 | $7,350 | $12,250 |
| $40,000 | $2,800 | $8,400 | $14,000 |
| $45,000 | $3,150 | $9,450 | $15,750 |
| $50,000 | $3,500 | $10,500 | $17,500 |
If ECMC holds your loans and you are able to make voluntary payments outside the Chapter 13 plan, you may send payments to:
ECMC
Lockbox #8682
P.O. Box 75848
St. Paul, MN 55175-0848
If you don’t know who currently holds your loans, find out at the National Student Loan Data System (NSLDS), the central database of federal student loan information.
Back to topStay eligible for financial aid
If you have filed for bankruptcy and are still enrolled in school at least half-time, you may still be eligible for additional Title IV financial aid.
Talk to your school’s financial aid counselor for more information. The financial aid counselor will probably request information such as the Title IV Eligibility letter. You may also contact your loan holder for assistance.
Back to topUnderstand tax offsets
When you default on a student loan, your tax refund and government payments can be withheld from you, otherwise known as “offset,” to pay your student loans. If all or part of your tax refunds was offset, you may be able to get that money back if your bankruptcy was filed prior to the offset.
Your loan holder can help you challenge a tax offset. If you don’t know who your loan holder is, go to the National Student Loan Data System (NSLDS), which is the central database for all federal student loan information. If ECMC holds your loans, call us at 1-888-363-4562 for assistance.
Back to topGet additional help
If you filed for bankruptcy, your lender may no longer “hold” your student loans. ECMC is the nation’s primary servicer of student loans in bankruptcy, which means we probably hold your loans.
Please contact ECMC at 1-888-363-4562 if you have any questions about student loan bankruptcy. If ECMC holds your loans, you can get detailed information about your account online by logging in to our secure site.
If you don’t know who your loan holder is, go to the National Student Loan Data System (NSLDS), which is the central database for all federal student loan information.
Please note: We cannot provide your private information to anyone else, such as your spouse, attorney or credit counselor, unless you approve. To give your consent, complete and sign an Authorization to Disclose Info in Bankruptcy. 
Send the form directly to us. Mail the form to:
ECMC
P.O. Box 75906
St. Paul, MN 55175
