[Oasfaa] Bankruptcy Scenario

[Melanie Rinehart]

Dear Colleagues,

We had a student that received student loans and had a $0 balance. Then the student withdrew and a R2T4 was performed, which resulted in money being returned. We returned the money through G5, which created a balance on the student's SSC account.  Now we have received noticed that the student has filed bankruptcy.  Do we have to forgive his debt on our books?

We know that if it was just a balance that we would have to forgive it, but we weren't sure since it was technically student loan money?  Or is it only student loans held by a servicer that is protected from student's filing bankruptcy?

Many thanks in advance!!
Melanie Rinehart, MBA
Director of Financial Assistance
2701 Boren Blvd
P.O. Box 351
Seminole, OK 74868
Office: 405.382.9717
Fax: 405.382.9579
m.rinehart at sscok.edu

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