The Student Loan Quagmire

Part of my day-to-day job is addressing student loans.  And it's a part of my job I really don't like. While I may have an answer for you, it is often an answer I don't like.  The fact is that when it comes to debt, student loan is an island.  Fo the purposes of bankruptcy we treat it differently than any other the of debt.  If you default on student loans, collection efforts can be dramatic: seizure of tax refunds, wage garnishments, etc.  Despite what you may have heard, student loans are all but impossible to get rid of.  

A situation that I often see is one in which an individual has taken out more in student loans than their degree will ever make them.  Of course, regardless of what degree you have, there is a chance that you may not get a job that supports the payback on the student loans that were taken out.  However, there are certain degrees tracks where high wage earning is unlikely.  Many teachers have student loans that outstrip their earnings.  Teaching is a wonderful profession and rewarding in may ways, just not monetarily.  

This doesn't mean there is no assistance for student loans in bankruptcy.  Bankruptcy can help your reorganize your debt and you should talk to a bankruptcy attorney fi you find yourself in trouble.