Student Loans And Bankruptcy

At some point, the government is going to have to address the exploding problem of private student loan debt. Impacts on the U.S. economy in recent years have caused high unemployment, lower paying jobs, and have left more and more graduating college students without the means of paying for their student loans. This has resulted in bankruptcy attorneys nationwide being inundated with calls asking whether or not a student loan can be discharged by filing bankruptcy. Unlike most debts that may be discharged in a bankruptcy, unfortunately, student loans cannot be discharged unless a person can show undue hardship. For example, for someone with a permanent disability who has no hope of earning any income in the future, it could be argued that repayment of the student loan would constitute an undue hardship, and the person’s loan should be forgiven.