My sister and her husband went to one of those %26quot;technical Institutes%26quot; to get a degree together they are over $80,000 in debt because of this. They later found out that no other schools would accept their credits and their degree didn%26#039;t mean anything and they can%26#039;t make more then minimum wage or get any of the jobs that the school promised they could get. Would this be considered that payment would be an undue hardship?
Student loans and bankruptcy?
it really depends...is this a federal loan? like a stafford?
if it is a private loan (variable, credit based), then you should be able to bankrupt on it...not that i recommend it, but it is the stafford loans that are extremely hard to include in BK.
if they are stafford loans, call your lender, you can get an economic hardship deferment or unemployment deferment which will postpone your payments...the government insures the money so lenders are able to be extremely flexible with the payments. for that matter, the deferments are set by the government if you qualify.
good luck either way, let me know if you have more questions.
Student loans and bankruptcy?
No. They signed the papers saying they would pay back that 80K. It doesn%26#039;t matter that it wasn%26#039;t an accredited/recognized school. Think about it, if this were allowed, no lender would loan money to anyone attending.
Oh, and you can%26#039;t bankrupt private student loans either (see link below).
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