Student Loan Questions
I've got some questions. I've read that student loans are not dischargable on a bankruptcy. I've also read that if one can prove hardship, or if the loan(s) are over 7 years old, that they can be discharged. Which of these is correct? What defines "hardship" in the eyes of the court, and the loan companies? I've got some student loans that are over 7 years old, and I have been in what I consider to be severe hardship for a long time now (continuing unemployment, no income, health problems, no insurance, etc.). I'm still working on getting a lawyer to handle my bankruptcy (RI), and it's like pulling teeth to get copies of my credit reports. I've also read that one can contact the loan company, and petition them to have the loan forgiven, deferred, or discharged. How is this done? Thank you all in advance for your help.
The standard for discharging student loans in bankruptcy is "undue hardship." This is a rather difficult threshold to meet in many cases. It is also a moving target, depending on which state you live in. I strongly recommend discussing this issue with your bankruptcy attorney.
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