4 Ways to Eliminate Your Student Loans Without Bankruptcy

Recent statistics show that there is more than $1 trillion dollars in student loan debt outstanding.  A trillion! If you went to any type of training/college it is likely that you have student loans.  Problem is many of the jobs that people are able to get with their schooling doesn’t provide enough pay to support their families and make the large student loan payment.

Most people will tell you there really isn’t anything that can be done to eliminate a student loan.  However, there are circumstances when the government will forgive (or discharge) your student loan and you don’t even need bankruptcy to do it.

Here are four ways a student loan can be eliminated:

Death – I know.  Now I am just being ridiculous.  But I thought I would get this one out of the way.  If you die your estate will not be held responsible for your student loan debt.  Alright.  On to more options that don’t involve your death…

Total and Permanent Disability – If you are disabled and cannot work you may be able to completely eliminate all of your student loans.  Further, while you are going through the application process of seeing if qualify all collection on your student loan must stop.

Your School Closed – if your school shut down and you were either enrolled at the time or had withdrawn from the school within 90 days of the school’s closure you may be able to eliminate all of your student loans incurred while at that school.  This type of discharge is becoming more common with the large number of private, for profit schools that have been popping up lately.

False Certification – if your school enrolled you knowing that you didn’t or wouldn’t be able to meet minimum state employment requirements for the job you are seeking you may be able to eliminate your student loans.

It is important to know that even if you don’t fall into one of the above categories that there are powerful tools that can be used to dramatically reduce your monthly student loan payment based upon your family size, income, and amount of student loan debt your carrying.

If you have questions or want to discuss your options when it comes to your student loans give me a call.