I have been doing extensive research about the options that are available to me regarding my inability to make my student loan payments. I have learned that it is sometimes possible to discharge student loan debt if one can prove that paying it off would cause excessive hardship to the borrower. Does anybody know if this is true? And if it is, how would one go about declaring bankruptcy on student loans?
I filed BK in 2004 and included my private student loans - they of course don't seem to care that I say they've been discharged. But I think they could be discharged as prior to the law change in 2005- private student loans were treated differently than federal loans and could be discharged. Anyone have experience with this? Am I missing something? My lawyer seems to think he'd have to reopen the case.... Hmmm?
Scott Dewitt is new CEO of Sallie Mae and placed his staff of debt collectors with quota of Debt sale/collections and is being hated by his own staff as they are over whelmed by his efforts ( according to staff person, yells, screams they are about to loose their jobs get those loans in any way you can) to get us to pay up!! Hearing nasty thing's from his own people, plus they/ he is poor mouthing how sad it is that he has to cut his staff back as so many loans are in default and he can not pay his staffing. Sallie Mae made huge profits from us.. and congress is letting them get away with it.. Di
I agree what in the world that is not a very good represenative of our case, countless one could have been interviewed randomly off of the members.. I do understand that they can't find job"s. A more impressive example is the family that is suffering under unemployment and the insane tactics of Sallie Mae and debt collectors.. Again go to and make a statement now !!!!!!!!!!!!http://www.complaintsboard.com
It has 232 complaints about Sallie Mae and G C Services just type in the name of company you'd like to see complaints and then complain.. we can then send it to reps, senators anyone in power that look this must end.. I too would love to won a home, be off the debt book and I already paid into Sallie above the orginal amount I owed, it is predatory lending in all it's glory, "A Slave To Sallie Mae"
All of you go to this online address and type in Sallie Mae they have 232 complaints about themselves and they need sent to every one as it is writing and important to pass along and add your complaints as well... http://www.complaintsboard.com it has a box that you can check on any company including Sallie Mae more foder for the fire we light under the butts of all who need to beaware of predatory lending as are the results and terror of it all. My good wishes go with all of you, secondly you can type in gc services they also have complaints too. "A Slave to Sallie Mae"
The ONLY way to get your student loan debts discharged in bankruptcy is to meet the extremely high standard of "undue hardship." The courts have interpreted this provision very strictly and, in fact, a recent decision makes it even harder to meet that standard. Courts now consider the availability of IBR and other income contingent repayment plans as part of the overall picture of whether you can repay. Basically, you have to be totally disabled without any hope of being able to ever repay before you'd successfully meet the standard of Undue Hardship.
The only way you can prove undue hardship is if you were rendered so totally and permanently disabled that you cannot possibly earn a living. That is being totally comatose, or paralyzed pretty much.
You may have a case if you have a debilitating disease such as AIDS or are in the final stages of cancer. However, in those cases you are close to death and they know they won't get any money from you anyway.
So, I would recommend that you first consolidate your student loans (If you haven't already) and then get a forebearance or deferment The best thing to do is keep in contact with your lending institutions and never ever go into default. Also, there are some fallacies that you can discharge personal student loans through bankruptcy, don't count on that either. It can get really murky.
Good luck, but forget about the undue hardship angle.
If you are able to type your question you won't qualify. A person has to basically be in a permanent coma to fulfill the hardship requirements.