Are the funds that a debtor deposits in his or her bank account exempt, if those funds are exclusively the proceeds of a federal student loan? This was the question recently examined by a Kansas bankruptcy court. The case was In Re Decena, and it was decided on March 30, 2015 (Case no. 14-10668, Dist. Of Kansas).
In the Decena case, the debtor filed a Chapter 7 bankruptcy and listed on the schedules a bank account that held funds that were exclusively loan proceeds from federally-guaranteed student loans. There was about $4500 in the account on the day of the filing of the case.