Rowe Law Firm
We Return Phone Calls!
800-724-1992 Toll Free 225-250-1161 Local
Contact Our Firm

Bankruptcy relief from student loan debt still far off for most grads

Many of our readers may be aware that it is extremely difficult to obtain a discharge of student loans in the bankruptcy process. Under bankruptcy law, a debtor must meet certain income requirements and must demonstrate that the student loan debt poses a substantial hardship for the debtor.

Under the undue hardship rule, courts generally look at three factors to determine whether a graduate qualifies for discharge of student loan debt. First, the student must have made a good faith effort to pay back the debt; second, the debtor must be unable to maintain a minimal standard of living while paying back the debt; and third, the debtor’s financial situation is not likely to change in the future. 

Ordinarily, the standard is extremely difficult to meet, but because of the growing number of graduates who are underemployed and burdened with nearly inescapable debt, some say the law is ripe for change. More recent decisions have extended a helping hand to struggling graduates, but even these case scenarios are beyond the reach of most struggling grads.

It remains to be seen whether the state of the law will change, an, if so, whether this will happen sooner or later. For graduates who do struggle with student loans, bankruptcy may still be an option, but the ability to discharge student loan debt is still very limited. Those who are unsure how to handle their debt could perhaps benefit from consulting with an experienced bankruptcy attorney to have their case evaluated and to determine the likelihood of their ability to have that debt discharged. More often than not, though, relief of student loan debt has to be sought in other ways.

No Comments

Leave a comment
Comment Information

  • Rowe Law Firm has always been there for me,
    without fail. Fast and efficient performance and
    reasonable prices keep my customers happy.

    - Jessie Clark, Hancock Bank - Testimonials
  • I found working with Rowe Law Firm to
    be a pleasure. I will be back.

    - Peggy Callihan, C.J. Brown Realtors - Testimonials
  • As an individual purchaser, I feel that I can
    trust Rowe Law Firm to make sure my closings
    are done right.

    - Charles Oliver, Architect - Testimonials

Broad Knowledge And
Extensive Experience

Over our decades of experience, we have successfully helped clients resolve a wide array of legal matters. Watch our videos to learn more about how we can help you.

Visit Our Video Center

Let Us Earn Your Trust.
Call For A Consultation.

At the Rowe Law Firm, we are proud that our clients can reach us when they need assistance. We always respond to phone calls promptly so you never have to struggle to reach your lawyer.

To learn more and schedule a consultation at our office in Baton Rouge, please send us an email by filling out our contact form. You may also call 225-250-1161 or 800-724-1992 toll free to speak with us about your case. We are eager to go to work for you.

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.

Back to top