Bankruptcy does discharge a student loan, but only if it meets a tough legal standard called undue hardship. Here’s what you need to prove. Criminal fines and restitution and child and spousal support are types of debts that bankruptcy essentially never discharges. Income taxes can be discharged but only after meeting certain conditions. We’ve covered these in our last … Read More
Chapter 13 bankruptcy can help you permanently stop student loan collection. It gives you more time and flexibility to show “undue hardship.” The Much Better Chapter 13 “Automatic Stay” Last time we explained how bankruptcy’s “automatic stay” immediately stops student loan collections against you. But if you file a Chapter 7 bankruptcy this protection from collections lasts only the … Read More
Chapter 7 bankruptcy can temporarily stop student loan collections. Here are several ways it can stop these collections permanently. Bankruptcy gives you tools to deal with special debts—including those you can’t easily write off. Last week we got into income taxes. Today we discuss student loans, focusing on this special kind of debt in Chapter 7 “straight bankruptcy.” Next … Read More
Chapter 7 will stop student loan collections. Then either write off the student loans through “undue hardship” or have time to deal with it. Our last blog post was about a Chapter 7 bankruptcy stopping a tax garnishment only temporarily. In that situation this was OK because it gave time to set up a payment program with the IRS/state. … Read More
Although it’s hard to get rid of student loans through bankruptcy, it’s worth knowing whether and how it can help.
Americans over 55 years old flunk the “student loan literacy” test. We have a generational divide in one of today’s biggest economic issues.
How well do Americans
Student loan borrowers are now buying houses and cars less, and have worse credit, than less educated people without student loans.
Credit card debt is almost the same as it was 10 years ago, vehicle debt is only modestly higher, but student loan debt is 4 TIMES as much.
The delinquency rate has doubled in just 4 years, in 2012 alone increasing as fast as at the worst of the 2007-2008 mortgage crisis.
The best way to improve how student loan borrowers are treated is to change the incentives for their loan servicers. That happened this week.
The essential facts on the President’s action to allow 5 million more student loan borrowers to cap payments at 10% of their monthly income.