Student Loan is a Hardship

[wfleitz]

State of VA

I have aproximately $130,000 in Student Loans and am unemployed. I read that the only way a student loan could be discharged is if it would be considered an undue burden or hardship. It is definitely a hardship for me and was wondering if I could legitimately discharge it through a Chapter 7 filing? If not is there a way to reduce the payments? I am supposed to pay something in the range about $1400 a month. Any help would be appreciated.

 

[HomeGuru]

State of VA

I have aproximately $130,000 in Student Loans and am unemployed. I read that the only way a student loan could be discharged is if it would be considered an undue burden or hardship. It is definitely a hardship for me and was wondering if I could legitimately discharge it through a Chapter 7 filing? If not is there a way to reduce the payments? I am supposed to pay something in the range about $1400 a month. Any help would be appreciated.

**A: after all that education, why can't you get a job?

 

[Ladynred]

Are you permanently disabled ?? Are you unable to EVER obtain employment for the rest of your life ???

If the answer to these questions is NO, then you will not succeed in getting the student loans discharged in bankruptcy ! You must pass a TEST to prove undue hardship and you're going to flunk it.

 

[wfleitz]

I got a PhD in Literature/Languages. I have not been able to land a job yet. I am not trying to run out on the debt but I certainly will never be able to pay this off in my life--I don't understand why they let gullible students like myself run up such debts especially if they are not pursuing degrees that would bring a decent income. Presently I am thinking about teahing overseas. There are jobs where I can earn the equivalent of about $10,000 a year and be able to live a decent life. It seems that the only way out of this is to make so little money that I would qualify for a perpetual deferrent.

 

[Ladynred]

Just like the credit cards handed out like candy on campus to college students, NO ONE explains to you that student loans almost NEVER go away, they can literally follow you to your grave and there's very little you can do to get out of paying them. If you don't pay, they'll take your tax refunds year after year for most of your adult life, they can garnish wages w/o getting a judgment, and unless you become completely unable to work and earn an income, you can't get them discharged in bankruptcy.

If this was explained to college-bound kids BEFORE they applied for SL's.. I think few would ever take but the smallest of loans. Graduates emerge with a nice bit of sheepskin... and crushing debt.

 

[toughluck73]

Just like the credit cards handed out like candy on campus to college students, NO ONE explains to you that student loans almost NEVER go away, they can literally follow you to your grave and there's very little you can do to get out of paying them. If you don't pay, they'll take your tax refunds year after year for most of your adult life, they can garnish wages w/o getting a judgment, and unless you become completely unable to work and earn an income, you can't get them discharged in bankruptcy.

If this was explained to college-bound kids BEFORE they applied for SL's.. I think few would ever take but the smallest of loans. Graduates emerge with a nice bit of sheepskin... and crushing debt.

Actually, this is not true. When you take out student loans you have to go through some online counseling (it's been in effect for a while, but not sure how far back it goes). In any event, everything from how much a month you will need to pay back, to how much interest you will pay is covered. Now if you take the counseling, answer the required questions correctly, and still don't remember, well then that's called selective memory, but the fact that they inform you, well they do. And trust me when I say this, they specifically mention not to borrow more than you can afford to pay back, especially if you don't expect to earn a good salary, it's mentioned exactly like this.

 

[Veronica1228]

Actually, this is not true. When you take out student loans you have to go through some online counseling (it's been in effect for a while, but not sure how far back it goes). In any event, everything from how much a month you will need to pay back, to how much interest you will pay is covered. Now if you take the counseling, answer the required questions correctly, and still don't remember, well then that's called selective memory, but the fact that they inform you, well they do. And trust me when I say this, they specifically mention not to borrow more than you can afford to pay back, especially if you don't expect to earn a good salary, it's mentioned exactly like this.

I agree that they do offer this couseling, but they do not make it mandatory. I had student loans when pursuing my Bachelors degree and while it was offered, they didn't force me take the seminars. This was only a few years ago.

 

[Ladynred]

Interesting to know there IS counseling of that type offered, but sad to find that its not mandatory - it should be. I would bet most college-bound kids don't give a darn about taking that sort of seminar/counseling. After all.. at that age we all know it all, right.. and we're invincible ???

 

[panzertanker]

I got a PhD in Literature/Languages. I have not been able to land a job yet. I am not trying to run out on the debt but I certainly will never be able to pay this off in my life--I don't understand why they let gullible students like myself run up such debts especially if they are not pursuing degrees that would bring a decent income. Presently I am thinking about teahing overseas. There are jobs where I can earn the equivalent of about $10,000 a year and be able to live a decent life. It seems that the only way out of this is to make so little money that I would qualify for a perpetual deferrent.

So if you qualify for a deferrment, take it, and continue to renew it as long as is legally allowed.

I had to defer my loans when I first got my Bachelor's and then later when I got out of Graduate school. It happens. To look for a way to discharge them is not feasible, b/c you DO have earning potential. You may not be gainfully employed right now, but you WILL be in the future.

Go for the deferrment and you can pay when you are employed....

 

[kopes]

I don't know about your student loan company but mine lets me pay with they call "income sensitive" payments. I submit a form verifying my income and then my payments are reduced accordingly. It has really helped me, lowered the payments a couple of hundred each month until I make more money. Check into something like that if you can't defer them for awhile. BTW, I went through a BK7 and the student loan payments are still with me. There is no way you are going to be able to get rid of them. Proving hardship was impossible.

 

[kathrynne]

What's this about online counseling for student loans? When I was earning my $50k paperweight "online" didn't exist--at least, not for most students! Then again, the loans were paid off within a couple of years even though my degrees had nothing to do with what I did for a living.

 

[Veronica1228]

What's this about online counseling for student loans? When I was earning my $50k paperweight "online" didn't exist--at least, not for most students! Then again, the loans were paid off within a couple of years even though my degrees had nothing to do with what I did for a living.

You sound like my Mom. Whenever I say online, she still thinks I'm talking about laundry!

 

[toughluck73]

I agree that they do offer this couseling, but they do not make it mandatory. I had student loans when pursuing my Bachelors degree and while it was offered, they didn't force me take the seminars. This was only a few years ago.

Actually you are mistaken. I have recently applied to a half dozen universities (along with financial aid) and they all require it. It’s mandated by federal law. As I said earlier, it’s called selective memory. You chose not to remember, perhaps because all you care about is getting it over with and getting your money (I vaguely remembered it myself until I was forced to retake it recently and reanswer the questions, and ironically answered one wrong again six years later, but am sure I had done it before). But as for how long has it been in effect? Well at least six years (when I went through it the first time), not sure how long before that it’s been in effect. As for what happens if you don’t go through the counseling? Well you simply don’t get the loan. It’s that simple. If you got the money, you must have done the counseling, unless you somehow tricked the system, or the university made an error. Below is the web address of one of the universities I applied to and what it has to say about it. As I said before, the counseling addresses every possible issue regarding student loans.



http://finaid.utexas.edu/requirements/loancounseling.html

“Loan counseling is required by law for all Stafford and Perkins loan borrowers, before any funds can be disbursed to them. The counseling sessions at UT are usually done on-line. These are informational sessions to inform borrowers about their rights and responsibilities under these loan programs and to let them know more about what they will need to do once they enter repayment on their loans. Loan Entrance Counseling is required for first-time borrowers, and Loan Exit Counseling is required whenever a previous borrower has left school or dropped below half-time enrollment. We will notify you by e-mail whenever exit counseling is required.”

 

[Veronica1228]

Actually you are mistaken. I have recently applied to a half dozen universities (along with financial aid) and they all require it. It’s mandated by federal law. As I said earlier, it’s called selective memory. You chose not to remember, perhaps because all you care about is getting it over with and getting your money (I vaguely remembered it myself until I was forced to retake it recently and reanswer the questions, and ironically answered one wrong again six years later, but am sure I had done it before). But as for how long has it been in effect? Well at least six years (when I went through it the first time), not sure how long before that it’s been in effect. As for what happens if you don’t go through the counseling? Well you simply don’t get the loan. It’s that simple. If you got the money, you must have done the counseling, unless you somehow tricked the system, or the university made an error. Below is the web address of one of the universities I applied to and what it has to say about it. As I said before, the counseling addresses every possible issue regarding student loans.



http://finaid.utexas.edu/requirements/loancounseling.html

“Loan counseling is required by law for all Stafford and Perkins loan borrowers, before any funds can be disbursed to them. The counseling sessions at UT are usually done on-line. These are informational sessions to inform borrowers about their rights and responsibilities under these loan programs and to let them know more about what they will need to do once they enter repayment on their loans. Loan Entrance Counseling is required for first-time borrowers, and Loan Exit Counseling is required whenever a previous borrower has left school or dropped below half-time enrollment. We will notify you by e-mail whenever exit counseling is required.”

I'm not forgetting. It honestly wasn't required when I first got my student loan as a freshman which was 1995.

 

[toughluck73]

As I said before, six years ago (actually about six and a half) which takes us back to 1998. Also, as I said before, "I don't know how far back beyond that it goes." Perhaps that was the first time it was required. I doubt it was in effect in 1992, as that was the first time I applied for loan, but subsequently denied them, as I didn't enroll, and don't remember having to do any. I am thinking it was about 1998, when the discharge law changed (I believe it was 1998).