Students loans – will you ever get rid of them?

Even drastic measures like bankruptcy may not be enough to wipe the slate clean



Online only.


With the average student debt load at $26, 680 in 2009, and interest rates at 8.5%, it’s not surprising to learn that former students are having difficulties repaying them.

For those who can’t keep up with their payments, the situation is made increasingly difficult due to the fact that student loans are classified in the same category as unpaid child support and criminal court settlements, A debtor can claim bankruptcy, but his or her student loans are still payable — and still collecting interest.

Prior to 1998 student debt was considered the same as all other debt and forgiven equally under bankruptcy. Now, it takes seven years after school to even apply to have student loans forgiven.

Even if one does wait seven years, the loan still might not be forgiven, especially if over 50% of one’s total debt is comprised of student loans.

So think twice before registering for those classes. If you have to borrow for tuition, you might be paying it off for a long time.

5 comments on “Students loans – will you ever get rid of them?

  1. I graduated with about that much in student loans, but had a loan through my bank. I paid interest from the get go (paid it down as much as I could every summer to keep the loan down). 3.5% interest while in school, now 4 %. Next paycheck I'm paying it off. I've been out of school three years. The key is to not spend money on stuff and put the extra towards the debt whenever one can afford to.


    • Way to go!
      Nice to see kids taking their (financial) responsibilities seriously.


  2. Pingback: Lastest “Loans” News

  3. Pingback: Student loans? will you ever get rid of them? | KiloGold

  4. I guess the irresponsible method would be to take out a consolidation loan from your bank. Use that loan to pay off your student debts and then claim bankruptcy.


Leave a comment

Your email address will not be published. Required fields are marked *