Massive student loan debt is one of the rising economic problems in the United States. This debt now totals over $1.6 trillion, and many politicians have looked for ways to relieve students of this burden. For the time being, this debt is merely a way of life for many people who just wanted a higher education.
Over time, some people may begin to wonder if they can eliminate their student loan debt by filing for bankruptcy. After all, bankruptcy is a viable means to discharge various other types of debt. Unfortunately, there is still no program in place that allows you to negate your student loans.
Student loan debt has protections from the federal government
Numerous institutions wanted more kids to attain higher education. To make this possible, the federal government changed laws to make it extremely difficult to discharge student loan debt. This was purposeful to make it so that entities would feel willing to offer such massive loans. As a result, it is nearly impossible to eliminate this debt through bankruptcy. That does not mean it is impossible.
Students must present an undue hardship case
You cannot get out of paying off your student loans because the amount of debt is too high. The court only hears your case if you can prove that repaying the loans presents an undue hardship on yourself and anyone who is financially dependent on you, such as children. You need to show you have made a genuine effort already to pay off the debt, but there are circumstances that make it too hard on you to pay off the rest.
You have to prove all of this during an adversarial hearing. During this hearing, you present evidence showing that paying off the debt is an extreme complication for you. An example of this would be you obtaining a degree requiring a great deal of physical activity, but you suffered an injury that prevents you from having a job in that field anymore.