Not in the US. As far as I know it is one of the very few forms of debt that cannot be discharged due to bankruptcy. If you're rich, you can run business after business into the ground and use bankruptcy to avoid paying your debts. Just want an education? Sorry, chum, you're on the hook forever.
You'll quickly get responses like "That was their moral failing for majoring in _____ which got replaced by _____, but if we made it dischargeable then banks would never give out money"
Of course if you really want to get the HN crowd up in arms fill in the blanks with "programming" and "AI".
The public service loan discharge “used” to be broken and people were always rejected, but they made significant overhauls a few years back. My father for example, had his loans forgiven for working at a public library for a decade or so.
I took the question to ask whether or not the debt was susceptible to discharge under the Bankruptcy Code. Public service forgiveness is a different beast that doesn't flow through the bankruptcy system.
Comments
Is student debt dischargeable in bankruptcy?
Not in the US. As far as I know it is one of the very few forms of debt that cannot be discharged due to bankruptcy. If you're rich, you can run business after business into the ground and use bankruptcy to avoid paying your debts. Just want an education? Sorry, chum, you're on the hook forever.
You'll quickly get responses like "That was their moral failing for majoring in _____ which got replaced by _____, but if we made it dischargeable then banks would never give out money"
Of course if you really want to get the HN crowd up in arms fill in the blanks with "programming" and "AI".
I think that George W Bush approved this policy shift on debt policy for student loans.
Yes but it is very difficult to prove all of the elements you have to prove to get it discharged. For most people the answer is no
The public service loan discharge “used” to be broken and people were always rejected, but they made significant overhauls a few years back. My father for example, had his loans forgiven for working at a public library for a decade or so.
I took the question to ask whether or not the debt was susceptible to discharge under the Bankruptcy Code. Public service forgiveness is a different beast that doesn't flow through the bankruptcy system.