Student Loan Bankruptcy
Learn more about student loan bankruptcy.
Will my student loan be discharge after filling for bankruptcy? This is a common question from many students, unfortunately the answer is 'No'. Many peoples are having serious trouble for paying their debt, the last step is to declare bankrupt, but student loan is not included in the bankruptcy file, unless the borrower can show that payment of the debt “will impose an undue hardship on you and your dependents.”
During 1970s, discharging student loan become very popular, when a student completed the study they just file for bankruptcy. This could get the loan out of way before they start earning money. However the requirements been changed since year 1998, According to the new changes, the student loan will only be discharged if the bankruptcy court is convinced that paying back the loan would bring about undue hardships for you or the people who are dependent on you.
There are 3 criterion to determine student loan discharging :-
1) Do student make effort to pay for student loan before filling bankruptcy, does the repayment period is it more than 5 years.
2) To repaying student loans prevent student from maintain minimal standard of living.
3) During the repayment period, is it difficult to maintain student's minimal standard of living?
Instead of filling bankruptcy for discharging student loans, it's better take other option such deferments or cancellations.
Check out some forgiveness programs by federal government, such being a teacher at specified state, joining the military / armed forces and etc. All these programs information can be find through website of federal government.
For more information about student loan, please check out Student Loans Guide instead of Student Loan Bankruptcy
Return to Loan-God Home Page
Return to top of the page