At the Student Loan Law Resolution Center, we often have to tell our clients that they can’t discharge their Federal or private student loans in bankruptcy unless they can show undue hardship.
Federal Student Loan Options
Our clients with Federal student loans, have greater options for dealing with financial difficulty in repaying student loans. These options include placing our clients in income-based repayment plans based on our client’s disposable income. There is even a discharge program for public service loan forgiveness and a discharge in the event of disability. We, at Student Loan Resolution Center, believe that those are sufficient protections for Federal student loan borrowers.