There's no Cure for Student Loans
August 3, 2011 6:41 AM Subscribe
posted by gauche (64 comments total)
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Since 2005, it has been nearly impossible to discharge student loans in bankruptcy. HR 2028
aim to make private student loans again dischargeable in bankruptcy."In the past, some privately funded student loans could be discharged in a Chapter 7 bankruptcy.
However, the law changed with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005
. Now, any education loan that qualifies for a tax deduction is non-dischargeable, unless you show 'undue hardship.'
"It's almost impossible to show undue hardship unless you're physically unable to work and your situation isn't likely to improve in the future. So, if your student loans make up most of your debt, it probably isn't wise to attempt this unless you're disabled."
Student loans have, of course, made it possible for many to pursue their aspirations, but there is a growing consensus that higher education
is a bubble
fixing to burst.
on the blue.