I recently read on the TSAC site that student loans which are a true hardship may be discharged in bankruptcy. Mine were high, $71,000 but made impossible by added charges for defaulting( I thought all were deferred while i was in grad school)I have a hugh wage garnishment and whopping balance of about $100,000 in student loans. TSAC wants $1000+ a month if I want to get away from a garnishment.They report this amount on my credit as my payment($1000+)when in fact it is about half that! (I have paid every month for 7 years but my credit is still screwed up! Credit Bureaus/FTC cannot/will not corect this!) That’s more than half of my income. Could bankruptcy eliminate this debt? What can I do?
Student loans can only be discharged in a bankruptcy if you can prove undue hardship. Unfortunately, this is a very difficult standard to meet.
There are no consistent standards across the country regarding what constitutes undue hardship; it is generally up to the discretion of the individual judge.
To find out what standards apply in your area, contact a bankruptcy attorney.