There are ways to get your student loan debt discharged, but they are not easy. Bankruptcy is not an option; student loans are a non-dischargeable debt and remain after your other debts are discharged in bankruptcy. (Actually, there is a way to have your student loan debt discharged through bankruptcy by proving undue hardship, but this is very difficult and your alternatives are usually easier.) The fact that there are so many repayment options for different income levels means that it is extremely unlikely your student loans will be discharged due to any financial reasons. So how are student loans discharged? There are several ways:
This is a special circumstance in which your education was somehow interfered with due to an unplanned school closure. Perhaps the school unexpectedly shut down, or there was an incident at the school that necessitated a shutdown. In these circumstances you will be able to receive a discharge of the loans you took out to pay for the education you could not receive due to the shutdown. In order to obtain this discharge you cannot have transferred those credits elsewhere.
Student loans can be discharged due to disability, although proving your disability is notoriously difficult. The standards for proving disability are rigid and yet somehow not well-defined, meaning that the evaluators have a lot of leeway to make a judgment as to whether your disability is of a type that qualifies for discharge. Proving the type of “total and permanent” disability that the law requires is often extremely challenging, therefore, but it can be done, and if you qualify it is your best option.
In circumstances where the institution you attended was not properly certified or accredited, you may be entitled to a discharge of the loans taken out to attend that school. These are special circumstances and you will likely need the help of a lawyer to evaluate whether you would qualify.
These and other specific circumstances can result in a discharge of your student loan debt, but it is not the most common method. Those seeking discharge due to financial hardship would be best suited to trying one of the income-based repayment plans. Contact us today to talk about your options.
We are the Credit Experts, Let us Help!