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>>student loan debt, which cannot be discharged via bankruptcy >Apparently this isn't true anymore: That's not a fair summary of the linked article. Student lo

>>student loan debt, which cannot be discharged via bankruptcy >Apparently this isn't true anymore: That's not a fair summary of the linked article. Student loan debt still cannot be discharged using the ordinary rules of bankruptcy. You still need to prove undue hardship, and that still involves a tough, three part test. What happened was that one court allowed a single mother on food stamps to discharge some student loan debt -- a fact pattern that struck observers as unusual because those circumstances are relatively mild as compared to most successful cases.

NoMoreNicksLeft 12y ago
> You still need to prove undue hardship, and that still involves a tough, three part test. This understates the difficulty. It is so nearly impossible to discharge student debt, that out of the many thousands who try it, only a handful manage the feat in any given year. It makes the news when this happens, it's that rare.
- withdavidli 12y ago
  Looking at the sourced paper, can be downloaded here: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1894445 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1894445 In 2007, 39% of the people who tried to discharge student loans were successful, 25% full discharge / 14% partial discharge. That is far from just a handful. The problem is, only .01% that could try to discharge students loans even tried. This may be because they didn't think it was even possible for them to win, advised against trying from counsel, or some other reason. The reason for why a person wouldn't try would be a good follow up study.
deleted 12y ago
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withdavidli 12y ago
It might not be ordinary procedures, but it's still possible. From word of mouth, all I have ever heard was that it was impossible to discharge, full or partial, student loans. The reason for linking the article was to provide evidence that some people are actually able to do it. Didn't mean to imply that everyone was capable of discharging student loans.

NoMoreNicksLeft 12y ago

> You still need to prove undue hardship, and that still involves a tough, three part test. This understates the difficulty. It is so nearly impossible to discharge student debt, that out of the many thousands who try it, only a handful manage the feat in any given year. It makes the news when this happens, it's that rare.

withdavidli 12y ago
Looking at the sourced paper, can be downloaded here: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1894445 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1894445 In 2007, 39% of the people who tried to discharge student loans were successful, 25% full discharge / 14% partial discharge. That is far from just a handful. The problem is, only .01% that could try to discharge students loans even tried. This may be because they didn't think it was even possible for them to win, advised against trying from counsel, or some other reason. The reason for why a person wouldn't try would be a good follow up study.

deleted 12y ago

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withdavidli 12y ago

It might not be ordinary procedures, but it's still possible. From word of mouth, all I have ever heard was that it was impossible to discharge, full or partial, student loans. The reason for linking the article was to provide evidence that some people are actually able to do it. Didn't mean to imply that everyone was capable of discharging student loans.