Student Loans and Filing for Bankruptcy

student loans

The average undergraduate student takes out $36,500 to attend a public university. Masters students, on average, take out an additional $46,600 for graduate school. Doctoral candidates in a Ph.D. program average $160,000. The average student attending med school takes out an additional $203,000.

 

Student loans can seem crushing and detrimental to your financial success. It doesn’t take long for student debt to begin to add up. Is filing for bankruptcy to rid yourself of student loans the best option for you?

 

It can be challenging to discharge student loans due to bankruptcy without the right attorney. In order to wave you clean of student loans, you must be able to show that repaying the debt will “impose an undue hardship” for both you and your dependents. If you and your attorney are able to prove undue hardship, then congratulations! Your student loans will be canceled. And because you filed for bankruptcy, you’re protected from collection to pay off your debts until your bankruptcy case is resolved.

 

Here are some questions to ask yourself if you feel like repaying your student loans is causing you undue hardship:

 

  • Are you having to choose between repaying your student loans and maintaining a minimal living standard?
  • Has it been challenging for you to pay back your student loans and maintain a minimal living standard for the better part of your loan repayment period?
  • Have you made an effort to repay your loans but just can’t seem to get there?
  • Would switching to a different payment plan or having a portion of your student loans waved help your financial situation?

 

If you answered yes to any of the questions, filing for bankruptcy to rid yourself of student loans might be the best option for you. Contact Leslie Craft at Craft Law Offices today at 252-752-0297 for your free consultation, and see if you can be financially free from your student loans.

 

 

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