Tag Archives: student loan

It is a harsh reality of today’s post-collegiate environment – two-thirds of all students now graduate with burdensome debt that can follow for many years to come. Following a recent news story on CBS Evening News, a comment was made that a student CAN have their federal student loans discharged in a Chapter 7 bankruptcy IF it is found that repayment of the loan would impose a hardship on the borrower. If only it were that easy… Discharging private student loan debt in bankruptcy currently requires a showing of “undue hardship,” a standard too often difficult to prove and very rarely met. The website FinAid estimates that less than 1% of private student loan borrowers in bankruptcy attempt to seek a hardship discharge of that obligation, and less than half of those people are successful. Courts typically refer to the following three requirements that a person must meet to qualify…
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