Category Archives: Student Loan Debt

Is student loan debt dischargeable in bankruptcy? Learn about student loan debt information and the potential benefits of filing bankruptcy.

How Can Student Loan Debt Hurt My Parents?

The issue of student loan debt is continuing to make news, but little is being done to prevent an obvious bubble from bursting. Students all over the country are struggling to make ends meet, pay rent, and have enough to eat due to the sheer size of their student loan debt. Now, students aren’t the only ones suffering from huge debt. Many parents of children who have taken out student loans are using their retirement accounts and life savings to help their children get out from under the crushing weight of thousands of dollars of debt. Many more are watching their credit scores plummet while avoiding creditor harassment calls because they are cosigners on their child’s unpaid student loan debt. The problem is quickly spreading. According to a recent survey by Discover, 6 in 10 parents say that they are planning on helping their kids pay off student loans after…
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Under the Mattress: History Says Millennials Saving Money is Possible

Many would argue that millennials have it worse than anyone. Struggling with student debt, unable to really get into the workforce, and generally too poor to afford to buy a house makes it seem like there is little hope for millennials saving money. However, if economic history means anything, perhaps they shouldn’t be so worried about their future after all. Stanford University economist Orazio Attanasio may have proven the stereotype against millennials wrong 20 years ago. In 1994, he conducted a study to measure how different age groups saved money. Some of his findings seem to show that millennials do not in fact have it harder than the rest. Can Millennials Save Money? Attanasio’s research found that most people, regardless of what generation they fall under, have a difficult time making it month to month in the early parts of their lives. Through his research we can see that the…
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When Can Student Loan Debt Be Discharged in Bankruptcy?

So many Americans are struggling with student loan debt nowadays. I was tempted to write “young Americans” but that just isn’t true. People of all ages are struggling, because student loan debt is practically a 25 years to life sentence. Unfortunately, no matter how much student loan debt resembles a plague, most people will not be able to get their student loan debt discharged in Chapter 7 bankruptcy. In order to do so, you would have to prove undue hardship, which has proven to be extremely difficult. Student Loan Debt and Undue Hardship In order to determine whether or not you qualify for undue hardship, most bankruptcy courts will use the Brunner test. To pass this test, you will have to meet all of the following requirements: Poverty – The first step is to show that you do not have enough income to continue making payments on your student loan…
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