When are student loans dischargeable? 18 Answers as of July 22, 2011

I know all students loans can't be discharged, but back in 1981 when I was 16 years old, I joined a school and left before 90 days afterwards I joined another school that closed down. Seeing how I never finished a the longevity of this loan I feel that they should of had written it off by now am I wrong in assuming this or are they abusing of their power.

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
It's extremely hard to show a hardship enough to discharge student loans
Answer Applies to: Washington
Replied: 7/22/2011
Financial Relief Law Center
Financial Relief Law Center | Mark Alonso
I believe they can continue to try and collect on this debt, especially given the fact that generally student loans are not dischargeable in bankruptcy, there is no statute of limitations that I know of that would stop them from trying to collect on this or that would require this to be forgiven or wiped out by now. It is possible to get student loans discharged in bankruptcy, however it is typically difficult to get this approved. You can attempt to do so by showing that an undue hardship would fall upon you if you were required or forced to pay this back. you would have to file for bankruptcy and then file a complaint to determine dischargeability of student loans. In order to show an undue hardship you would likely have to show 1- poverty and that with your current income level you cannot maintain a minimal standard of living and repay the loan, 2- that your situation is not temporary but will continue to persist for a significant part of the repayment period and 3- that you have at some point made good faith attempts to pay this loan (if you've never made a payment on this, or defaulted shortly after it was due, then this will be difficult to prove). It is difficult to get this approved, but not impossible.
Answer Applies to: California
Replied: 7/21/2011
Bankruptcy Law office of Bill Rubendall
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
Except for undue hardship student loans are not dischargeable in bankruptcy. If the student loan was not legitimate you may be able to file a lawsuit in state court.
Answer Applies to: California
Replied: 7/21/2011
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE).
CONSUMER PROTECTION ASSISTANCE COALITION, INC. (DE). | Gary Lee Lane
Never.
Answer Applies to: California
Replied: 7/20/2011
Law Office of J. Thomas Black, P.C.
Law Office of J. Thomas Black, P.C. | J. Thomas Black
Student loans are only dischargeable in bankruptcy if you can show "undue hardship." Undue hardship is more than ordinary hardship. You must prove to the court that (1) if forced to repay the loan(s), you could not maintain a minimal standard of living; (2) that there are exceptional circumstances that exist, that show that this condition is going to continue for all or practically all of the repayment period; and (3) that you have made good faith efforts to repay the loan(s). No matter how old the loan is, the statute of limitations was abolished for student loans. However, you may have defenses to your student loans that could result in their being forgiven. For example, there is such a thing as a "closed school discharge."
Answer Applies to: Texas
Replied: 7/20/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    When you were 16 you could not enter into a valid contract, you were too young. See a lawyer.
    Answer Applies to: California
    Replied: 7/20/2011
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    Basically student loan are almost never dischargeable and the typical 7 year statute of limitations don't run on them. This is an act of Congress, so let your congressman know you don't like it.
    Answer Applies to: Michigan
    Replied: 7/20/2011
    Ray Fisher Law Offices
    Ray Fisher Law Offices | Ray Fisher
    When are student loans dischargeable? Never Question Detail: I know all students loans can't be discharged, but back in 1981 when I was 16 years old, I joined a school and left before 90 days afterwards I joined another school that closed down. Seeing how I never finished a the longevity of this loan I feel that they should of had written it off by now am I wrong in assuming this or are they abusing of their power. You are wrong in assuming they should have written it off. As for abusing their power that is a judgment on your part. You are certainly entitled to your opinion on that point.
    Answer Applies to: Texas
    Replied: 7/20/2011
    Rosenberg & Press
    Rosenberg & Press | Max L. Rosenberg
    Clearly by your grammar, failure to punctuate, and lack of subject verb agreement in your pseudo-question, dropping out of school was a bad idea. As to your loans, they are still non-dischargeable. The law has fluctuated in the past regarding student loans, and currently takes the approach that you have garnered a form of intellectual asset that cannot be taken away from you. As such, the current thinking is that your loan must be paid back since the asset cannot be repossessed. It would be interesting however, if you made the argument that you have no asset and have learned nothing. In extreme hardship cases it is possible on rare occasions to discharge student loans, however, you must show grave hardship. Thanks for tuning in.
    Answer Applies to: Connecticut
    Replied: 7/20/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    Student loans (loans made for an educational purpose) are only dischargable in bankruptcy if the debtor can establish extreme hardship. The standards for establishing hardship are very high. Essentially, you need to show not only that you are unable to pay the debt today, but that you have trimmed all of your expenses as much as you possibly can and there is no likelihood that you will EVER be in a position to pay the debt. In that case, the Court may discharge the debt (or they may discharge only some of the debt). The question of when the statute of limitations bars collection on a debt is another matter. The creditor may no longer be able to sue you and receive a judgment on the debt. This does not mean that you don't owe the money (you did borrow it) or that they will necessarily stop asking you to pay. It simply means that they don't have the power to force you to pay anything.
    Answer Applies to: Colorado
    Replied: 7/20/2011
    Judith A. Runyon, Esq. Attorney at Law
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    Student loans are not dischargeable in bankruptcy
    Answer Applies to: California
    Replied: 7/20/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    Student loans, no matter how old, are non-dischargeable in bankruptcy. The sole exception is a hardship discharge, and to qualify you essentially have to be so disabled that you will never have income. There MAY, depending on state law, be a defense, as to a contract entered into by a minor. See a lawyer as to that.
    Answer Applies to: Georgia
    Replied: 7/20/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    Usually they last forever. But you didn't have contractual capacity at 16, and if the other wasn't federally guaranteed you might be ok. Just don't acknowledge the debt to them.
    Answer Applies to: Virginia
    Replied: 7/20/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    Student loans are only dischargeable when you have an illness or injury that prevents you from working and paying back your loan.
    Answer Applies to: Washington
    Replied: 7/20/2011
    Law Offices of Alexzander C. J. Adams, P.C.
    Law Offices of Alexzander C. J. Adams, P.C. | Alexzander Adams
    You may have a case. Student loans are governed by a high discharge standard whereby you have to prove they are an undue burden on your situation. While this sounds easy, it is an exceedingly high standard and it is tough to find an attorney to take on these cases. These cases are also extremely expensive to try in court, and, in the end, you may not have the loans discharged after trial. It is based on whether or not your facts match up in the courts discretion to other situations where the loans are dis chargeable.
    Answer Applies to: Oregon
    Replied: 7/20/2011
    Law Offices of Michael T. Krueger
    Law Offices of Michael T. Krueger | Michael Krueger
    There are several factors that must be taken into consideration before your loans can be discharged. Keep in mind that discharging loans is difficult and will require an adversary proceeding proving that you have satisfied the Brunner Test. Some of the factors that you've described may help satisfy the Brunner test. Your loans will never go away unless they are discharged.
    Answer Applies to: California
    Replied: 7/20/2011
    Law Office of Chirnese L. Liverpool
    Law Office of Chirnese L. Liverpool | Chirnese Liverpool
    There may be options for you to get out of the loan for the school that closed. Was it a government loan? If so, google student loan forgiveness and school closures.
    Answer Applies to: California
    Replied: 7/20/2011
Click to View More Answers:
12 3 Free Legal QuestionsConnect with a local attorney