Dischargeable Student Loan Debt

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NorCalBruin
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Joined: Sun Sep 19, 2010 7:58 pm

Dischargeable Student Loan Debt

Postby NorCalBruin » Thu Jan 27, 2011 10:35 pm

Ok, potentially stupid question.

Everyone says that student loans are non-dischargeable in bankruptcy... which seems to be true for all Government loan programs and all non-profit loans.

But if you got private loans from a bank, those are dischargeable, right? Look, I'm not planning on going bankrupt, but if one was able to finance their education on private loans and then went bankrupt, that would be dischargeable, right?

---and I'm not talking about the clause where you can discharge student loans if repaying would cause "undue hardship".

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vertex
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Re: Dischargeable Student Loan Debt

Postby vertex » Thu Jan 27, 2011 10:37 pm

I'm pretty sure all student loans--public and private--are non-dischargeable in bankruptcy except in very unusual circumstances. Otherwise the interest rates for private lenders would be way, way higher than they are now.

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NorCalBruin
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Re: Dischargeable Student Loan Debt

Postby NorCalBruin » Thu Jan 27, 2011 10:40 pm

You're right. I looked it up. Pretty much all exceptions were wiped out in 2005. And most exceptions were wiped out in '84

shaville
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Joined: Mon Jun 02, 2008 2:43 am

Re: Dischargeable Student Loan Debt

Postby shaville » Thu Jan 27, 2011 10:44 pm

Gotta show undue hardship.




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