Are student loans dischargeable in bankruptcy? The answer is generally, no. Student loans can only be discharged if you can show that repaying the loan would cause an “undue hardship”. Although paying student loans is a hardship for almost everyone, the standard established by the bankruptcy courts is very difficult to meet. The Debtor must show that they cannot afford to make the payments now and there is very little likelihood that they will be able to make the student loan payments in the future. While eliminating student loans in bankruptcy may not be an option, there are other alternatives that exist.
I recently came across an e-book entitled, “60+ Ways to Get Rid of Your Student Loans (Without Paying Them)” from Saltmoney.org. https://www.saltmoney.org/Assets/PDFs/60-ways-to-get-rid-of-your-student-loans-without-paying-them.pdf This book explores federal and state options to forgive, discharge, or pay for all or a portion of your federal student loans. In the book you will find eligibility requirements, qualifying loans, and a step-by-step process on how to apply for the forgiveness. There are many state-specific and profession-specific programs listed, but there are also universal community services and military service options.
If you are a recent graduate or are in a career transition and are overwhelmed by your student loan payments, this book may provide some direction towards student loan forgiveness.