Did you know that some student loans are eligible for standard bankruptcy discharge?
Although many student loans are subject to an “undue hardship” standard and require a separate proceeding to be discharged in bankruptcy, some private student loans can be discharged in a standard bankruptcy proceeding, just like most other unsecured consumer debts. For this subset of private student loans, a bankruptcy discharge order eliminates the consumer’s debt.
Some examples of student loans eligible for standard bankruptcy discharge include:
- Loans made to attend schools that are not eligible to receive U.S. Federal student aid, such as unaccredited schools and foreign schools (“non-Title IV schools”)
- Loans to students attending school less than half-time
- Loans made in amounts in excess of the cost of attendance, which are often disbursed directly to the borrower, instead of the school
- Loans made to cover fees and living expenses incurred while studying for the bar exam or other professional exams
- Loans made to cover fees, living expenses, and moving costs associated with medical or dental residency
- Other loans made for non-qualified higher education expenses
Student Loan Lawyers And Bankruptcy Attorneys That Can Help
At Clair Gjertsen & Weathers PLLC, we listen to our clients and empower them with knowledge, compassion, and creative solutions to relieve their financial anxiety and help them achieve their financial and personal goals.
Given the complexities of discharging student loans in bankruptcy, it is imperative to contact an experienced bankruptcy law firm. Clair Gjertsen & Weathers, PLLC is an experienced bankruptcy law firm who has helped thousands of people in financial distress. We understand that student loans can be overwhelming and daunting and we are here to help you through the process. Please give us a call to schedule a free consultation at 914.472.6202.