Discharging Student Loans

If you are looking to discharge your student loans, it is a complex process, but not impossible.
After 1990, student loans are no longer considered “dischargeable.” This means that in order
to seek relief, an adversary proceeding is required--a lawsuit must be filed separate from the
bankruptcy case. You must prove that the payment on your student loans causes an undue
hardship. Most courts use the Brunner test to measure the burden of the debt. It is a three-
pronged evaluation that requires the following: 1) the individual and their dependents cannot
maintain a minimal standard of living if they were required to pay the student loan, 2) there
must be additional factors that guarantee this poor standard of living will continue throughout
the whole payment period, and 3) the individual has made good faith effort to pay the loans. If
you can demonstrate that you meet these conditions, your student loan could be cancelled as a
whole.

There are advantages and disadvantages to discharging student loans. To better understand if
filing for an adversary proceeding is for you, it is recommended that you set up a consultation
with your local bankruptcy attorney.