How do I wipe a student loan off my record? 14 Answers as of November 08, 2013

I have a student loan for over $60,000. (I just checked). I would like to completely wipe it off my record. I went to Katharine Gibbs School. It was a complete waste of money. They offered lots of services which they fell short on. I tried to negotiate but they did not. I might have talked to the wrong person. My Account is held by Nelnet which is a student loan servicer. Who should I talk to? I don't think it's fair to pay all that money. On top of that, I've been unemployed for over a year already. Please advise the best options.

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Law Office of Thomas C. Phipps | Thomas C Phipps
You can't wipe it off. You would have to negotiate a settlement for less than the full amount. It would be reported a\on your credit report as being compromised.
Answer Applies to: Missouri
Replied: 11/8/2013
The Law Offices of Katie M. Stone
The Law Offices of Katie M. Stone | Katie M. Stone
Student loans are considered non-dischargeable debt unless you can prove that the debt will impose an undue hardship on you and your dependents. A common test that most courts use to evaluate whether a particular debtor has shown an undue hardship is the Brunner test which requires a showing that 1) based on the current income and expenses, the debtor cannot maintain a "minimal" standard of living for the debtor and the debtor's dependents if forced to repay the student loans; 2) additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and 3) the debtor has made good faith efforts to repay the loans. The court interpretation of the three prongs have become increasingly stringent. It is difficult, but not impossible to have your student loan debt through bankruptcy. I hope you found this answer useful.
Answer Applies to: Florida
Replied: 9/27/2013
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
Well these are tough cases. Not likely you can get rid of it bankruptcy. If the school has a miserable record of getting jobs for the students you might try to sue them for fraud.
Answer Applies to: California
Replied: 9/23/2013
Charles R. Chesnutt, P.C.
Charles R. Chesnutt, P.C. | Charles R. Chesnutt
Unfortunately, bankruptcy law places stringent requirements on the discharge of student loans, especially in Texas and Louisiana. In order to discharge student loans one must clearly demonstrate an inability to pay them and generally being out of a job is not sufficient.
Answer Applies to: Texas
Replied: 9/20/2013
A Fresh Start
A Fresh Start | Dorothy G Bunce
The bankruptcy law doesn't allow you to discharge a debt because you don't think that the debt is fair. To discharge a student loan typically requires that you show that you are unable to work to ever be able to pay for this loan. Unless you are seriously disabled, it will be difficult to meet that criteria. I would suggest meeting with a bankruptcy attorney that specializes in this field, as this is a difficult and expensive task to accomplish.
Answer Applies to: Nevada
Replied: 9/19/2013
    Heineman Law Office
    Heineman Law Office | Jeff Heineman
    You must file a bankruptcy, and then file an adversary proceeding, based on that bankruptcy, in the U.S. Bankruptcy Court. Case law on this issue has created a test to evaluate whether your loan can be eliminated or possibly reduced. The test is a little complicated, and it takes into account your current situation, your future income potential, your age, your health, your cost of living, etc.. In short, it evaluates everything. To fight this matter can be expensive. The attorney fees will likely exceed $10,000.00, and very possibly much more. Student loan companies fight these matters to the bitter end, usually. The last one I assisted on had legal fees of over $20,000.
    Answer Applies to: Idaho
    Replied: 9/19/2013
    Richard L. Hirsh, P.C. | Richard L. Hirsh
    Under the bankruptcy code, a student loan is non-dischargeable unless you can show extreme hardship. Most debtors cannot meet that test.
    Answer Applies to: Illinois
    Replied: 9/19/2013
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    It this is a federally guaranteed student loan you cannot wipe it out through a bankruptcy. You will need to show significant financial hardship. This is very difficult to show and you have the burden of proof. Unemployment is not sufficient. I recommend you attempt to negotiate some sort of reasonable payment.
    Answer Applies to: Nevada
    Replied: 9/19/2013
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    There is no way to just wipe it out and assuming this is a qualified student loan, even bankruptcy would not discharge the debt.
    Answer Applies to: New York
    Replied: 9/19/2013
    Law Office of David Molot | David Molot
    Generally speaking it is almost impossible to discharge your student loans. There are only a few limited exceptions.
    Answer Applies to: New York
    Replied: 9/19/2013
    Ferguson & Ferguson
    Ferguson & Ferguson | Randy W. Ferguson
    You can't wipe away student loans. You can't bankrupt them.
    Answer Applies to: Alabama
    Replied: 9/19/2013
    Musilli Brennan Associates PLLC
    Musilli Brennan Associates PLLC | John F Brennan
    Given your unemployed status you might qualify for the hardship exception to the normal NON-dischargeability of student loans.
    Answer Applies to: Michigan
    Replied: 9/19/2013
    Stuart P Gelberg
    Stuart P Gelberg | Stuart P Gelberg
    I don't understand the Q. Go to the US Dept of Ed if you believe the school was a fraud. Good luck.
    Answer Applies to: New York
    Replied: 9/19/2013
    Law Offices of Linda Rose Fessler | Linda Fessler
    I think your best option is to file a lawsuit. I know that money is tight, but that is the best way of proving that they breached their contract. In addition, you can file a complaint with the consumer affairs department of the State of California.
    Answer Applies to: California
    Replied: 9/19/2013
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