Student Loans and Bankruptcy
This economy has led more people to consider bankruptcy. You can eliminate most debts, including credit cards. But you cannot get rid of a student loan. It may sound odd, but a private bank that loans you money with a credit card will have the credit card debt discharged at bankruptcy. But a private student loan from this same bank cannot be done away with. Beware of this fact if you get private student loans. These are the same rules as the Federal student loans. Since all direct loans are handled by the federal government, when you borrow the money, you owe the taxpayers this money. It's essentially who you borrowed it from. Taxpayer debts are hardly ever discharged. Student loans are no exception. You cannot get a student loan discharged. You will owe the money basically forever, or until you pay it off. Private student loans were not originally in this agreement passed by congress in 1976. Before this time, all student loans were eligible to be discharged at bankruptcy. I...