Next to a home mortgage, student loans are among the largest debts that most people owe. While government regulations had made it easy over the past several decades to obtain financing for educational purposes, you can find yourself paying tens of thousands of dollars for a degree you never got or rarely use. While student loan debt is typically excluded from bankruptcy proceedings, there are certain limited situations in which your debt may be discharged and eliminated.
Student Loan Debts
A March 2017 Time/Money report states that the easy availability of student loan aid has made it easy to go back to school in order to further your career goals. Unfortunately, a sluggish job market and a lack of well-paying positions mean much of this debt ends up going unpaid.
During 2016 more than eight million student loan borrowers gave up on ever repaying more than $137 billion in student aid. Roughly one out of every six borrowers failed to make a payment over the previous six-month period, and are in danger of defaulting on their student loans. Options currently offered for dealing with these debts include:
Discharging Student Loans through Bankruptcy
While student loans are traditionally exempt from being included in your bankruptcy case, there are certain circumstances under which these debts may be discharged or forgiven. The U.S. Department of Education advises you may be entitled to have your student loans eliminated if you can prove continuing to make payments would be an undue hardship. This may occur in the following situations:
Your student loans may be eligible for debt forgiveness if you work in social services or law enforcement, particularly in underserved areas.
Reach Out to Us Today for Help
There is no guarantee that any of the above conditions will warrant a discharge. To discuss your particular situation and the options which may be available, call or contact the Law Offices Of Eric G. Zelazny today. We can arrange a consultation with our skilled Tinley Park bankruptcy attorneys, who can advise you on the best course of action to clear your debts.