The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
  • Building Wealth
  • Investing
  • Credit Scores
  • Student Loans
  • Paying for College
  • Saving Money
  • Real Estate
  • Credit Card Debt
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
No Result
View All Result
The Money Coach
No Result
View All Result

Do I Qualify To Have My Student Loans Discharged?

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Student Loans
Reading Time: 2 mins read
student loans discharged
9
SHARES
148
VIEWS
Share on FacebookShare on Twitter

Q: Hi. I keep hearing that only a small number of people can discharge private loans in bankruptcy and I want to know what makes them eligible?

I owe over $100,000 in student loans for a degree I never finished. I have multiple health issues and have not worked in years and want to know if I qualify

A: Thanks for reaching out to me, and I’m sorry to hear about how overwhelming your student loans have become.

The bottom line about student loan debts is that they are “generally” NOT able to be discharged in bankruptcy court.

The exception to that rule boils down to this: You’d have to convince a judge that you are in extreme dire straits – and will continue to be in an insurmountable financial condition in the future – for them to even consider it.
Unfortunately, there is no “standard” or “rule” about what qualifies. It’s totally up to each individual judge.

And instances of student loans being discharged in bankruptcy court are done on a case-by-case basis.

Common problems: going through divorce, being unemployed, having medical problems or excessive credit card debt, etc. — those situations simply don’t convince judges.

They’ve seen and heard all those cases before. And during the recession, of course, people’s financial situations worsened.

So it’s not like people didn’t try to get their student loan debts discharged in bankruptcy.

But honestly, I don’t know of a single student loan debtor who has been able to convince a judge to wipe out their student loans — and that goes for federal and private loans.

In your case, owing a large amount of debt (over $100,000) doesn’t qualify you for relief. Also, the fact that you never completed the degree is irrelevant from the law’s standpoint. That doesn’t qualify you for a bankruptcy discharge either.

Your best bet is to probably look into the possibility of having your student loans discharged due to disability. You said you’ve been out of work for years and have multiple health issues.

To get a student loan discharged due to disability, a physician has to certify that you are “totally and permanently disabled” and will likely never work again a day in your life.

Again, they make the standard very, very high to let you even qualify for a disability discharge.

I know this is not the information you’d hoped to hear. But I want you to have a realistic view of your options.

Here is more information on getting student loans discharged.

You Can Qualify For Student Loan Forgiveness If You Are Disabled

Do You Have To Pay Back A Student Loan If You Are Disabled

I hope this info helps.

Tags: student loan discharge
Previous Post

Firms Banned From Offering Debt Relief Services

Next Post

Child Support: A Personal Story From The Money Coach

Related Articles

CARES Act: Student Loan Relief
Covid-19

Get Your Employer to Pay $5,250 of Your Student Loans in 2020: FAQs About the CARES Act

by Lynnette Khalfani-Cox, The Money Coach
COVID-19 Private Student Loans
Covid-19 Video

COVID-19: Getting Relief From Your Private Student Loans – VIDEO

by Lynnette Khalfani-Cox, The Money Coach
Economic Relief Bill
Covid-19 Video

COVID 19: A Good News Surprise in the Coronavirus Economic Relief Bill – VIDEO

by Lynnette Khalfani-Cox, The Money Coach
student loan relief covid-19
Covid-19

Are You Eligible for Student Loan Relief Under The CARES Act?

by Lynnette Khalfani-Cox, The Money Coach
His pledge to pay off student debt made Austin billionaire Robert Smith a Texan of the Year finalist
Student Loans

Billionaire Robert F. Smith a Texan of the Year Finalist

by Guest Blogger
Student Loan Repayment
Student Loans

Is There an Optimal Strategy to Repaying Student Loan Debt?

by Guest Blogger
game_of_loans
Student Loans

The FTC’s Crackdown on Student Loan Scammers

by Lynnette Khalfani-Cox, The Money Coach
refinance student loans
Student Loans

4 Options to Refinance Student Loans and Save Money

by Lynnette Khalfani-Cox, The Money Coach
get rid of student loans
Student Loans

85 Government Agencies That Will Pay Off Your Student Loans

by Lynnette Khalfani-Cox, The Money Coach
Next Post
Lynnette Khalfani-Cox

Child Support: A Personal Story From The Money Coach

Please login to join discussion

About

Lynnette Khalfani-Cox, The Money Coach®, is a personal finance expert, speaker, and author of 15 money-management books, including the New York Times bestseller Zero Debt: The Ultimate Guide to Financial Freedom.

Lynnette has been seen on more than 1,000 TV segments nationwide, including television appearances on Oprah, Dr. Phil, The Dr. Oz Show, The Steve Harvey Show, Good Morning America, The TODAY Show and many more.

Quick Links

  • Money Coach University
  • Lynnette's Personal Site
  • The Money Coach Corporate Site
  • Video Portfolio
  • Privacy Policy

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2022 TheMoneyCoach.net, LLC. All Rights Reserved.

No Result
View All Result
  • Meet Lynnette
  • Money Coach University™
  • Books
  • Financial Coaching
  • Speaking
  • The Money Coach Recommends™
  • Media Kit
  • Contact

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist