Getting your student loans cancelled or discharged is an incredibly difficult and arduous process. The possibility of getting your student loans cancelled or discharge depends on what type of loan you have. If you have a private loan, discharge is very challenging. However, if you meet the narrow criteria, you may be allowed to discharge of some or all your loans.
Federal Student Loan Discharge
If you have a federal loan, you can discharge or cancel your loan in a few different ways. The first proving a claim of total disability. You must provide the government proof that you are totally and permanently disabled. The Department of Education will evaluate the claim and determine whether you are eligible for discharge. Your loans can also be discharged upon death, or in some cases through bankruptcy. There are also programs for loan forgiveness for teachers and those in public service that can wipe your debt after a period of ten years.
Student Loans and Bankruptcy
When you file for either Chapter 7 or Chapter 13 bankruptcy, you may be able to have your loan discharged. This is only if the court finds that the repayment of that loan would be an incredible hardship on you and your family. The court uses a three-part test to determine hardship.
- If you paid the loan, you cannot maintain a minimal standard of living.
- There is evidence that the hardship experienced will last for the entire loan repayment period.
- You made a good-faith effort to repay before filing for bankruptcy.
You must satisfy all three elements to discharge your debt upon bankruptcy.
If you need your student loans cancelled or discharged, contact the attorneys at Leinart Law today. Call (469) 232-3328 to speak to an experienced debt attorney and schedule your initial consultation. We are happy to help you get to a much better financial place.