Can I Discharge a Student Loan

Posted by Kevin Ryan | Nov 03, 2016 | 0 Comments

In most cases, you cannot discharge a student loan.   Although the subject is more complicated in some instances than can be covered in a blog post, there are cases where the debtor can discharge a student loan.  A discharge of a student loan can be ordered by the United States Bankruptcy Court, or it can be determined administratively by the Department of Education.   Every debtor considering this issue should first check the following webpage published by the U.S. Department of Education to provide a summary of the cases where an administrative discharge ( meaning outside of Court action) can occur:US Dept Ed website.   

The Debtor can choose to have the bankruptcy court determine if the debtor qualifies for a discharge of the student loan by filing an adversary case against the U.S. Department of Education, and, if the loan was incurred some time before 2009, the lender / servicing company who is the creditor on the account.   The United States Department of Education and the United States Attorney General in your bankruptcy district must be served notice of the Adversary Complaint.   The Court must consider the following factors in deciding whether a student loan can be discharged as an "undue hardship:"

(1) the debtor cannot maintain, based on current income and expenses, a “minimal” standard of living for herself and her dependents if forced to repay the loans; (2) additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and (3) the debtor has made good faith efforts to repay the loans.

The loan can be discharged in whole or in part if the bankruptcy court determines that there is an "undue hardship," with consideration of the foregoing factors.   The Debtor can present testimony of a medical professional and medical records to support the claim of disability, and financial information about the debtor's household to show that the disability directly and adversely affects the debtor's ability to maintain a lifestyle above poverty level.  The determination by the Court is fact sensitive and decisions can vary from case to case. 

About the Author

Kevin Ryan

"I'll never be the kind of attorney your creditors want me to be. I'll always be the kind of attorney you NEED me to be. Call me. I'll BE there for you. And I'll make them go away."  -Kevin Ryan, Attorney at Law Kevin Ryan is a graduate of the College of Wooster and the Cleveland Marshall College of Law. He is admitted to practice before all Alabama State Courts, the United States District Court for the Southern District of Alabama, and the United States Bankruptcy Court for the Southern District of Alabama. The United States Bankruptcy Court is a part of the United States District Court. Since 1998, Mr. Ryan has represented thousands of individual clients in bankruptcy, criminal, divorce, probate, personal injury, and real estate matters.  Attorney Ryan is also a licensed real estate agent in Alabama.  He handles  Bank-owned properties, short sales, and conventional sales in addition to conventional real estate listings.   This wide range of experience enables Attorney Ryan to take a wider look at your legal matter. It is important to consult with an attorney who can see from experience how other legal issues may affect your situation, and advise you accordingly. Personal Info Kevin Ryan is a member of First Baptist Church in Silverhill, Alabama. He resides in Silverhill with his wife Jessica and their three children. Committed to helping our Clients achieve a fresh financial start Our practice focuses primarily on consumer bankruptcy matters under Chapter 7 and Chapter 13 of the United States Bankruptcy Code.  Our law practice also includes matters where bankruptcy litigation, appellate work, or involvement in civil lawsuits is needed by a client.     No representation is made that the quality of any of these legal services is of higher quality than another attorney or law firm.   The United States Bankruptcy Code requires the following notice:  We are a Debt Relief Agency, which means we help people get legal relief from their Debts through the bankruptcy process. Interested in learning more about our bankruptcy attorney near Mobile, Alabama? Contact Us for help with chapter 7 bankruptcy or chapter 13 bankruptcy in Mobile, Baldwin and Washington counties. Education Juris Doctor, Cleveland Marshall College of Law, 1997 Employed full time as a paralegal while attending law school in the evenings. B.A., The College of Wooster, 1994 NCAA Div.III All Conference (N.C.A.C.) Football Team : Defense 1993; Most Inspirational Senior Award 1993; Co-captain 1993; Letterman 1991-1993; Phi Sigma Alapha Fraternity 1991-1994; Athletic Director Jurisdictions Admitted to Practice Alabama


There are no comments for this post. Be the first and Add your Comment below.

Leave a Comment


We serve the following localities: Choctaw county, Washington county, Clarke county, Monroe county, Escambia county, Mobile County including Eight Mile, Grand Bay, Irvington, Mobile, Prichard, Saraland, Semmes, Theodore, and Tillmans Corner; and Baldwin County including Bay Minette, Daphne, Fairhope, Foley, and Robertsdale.

I'll BE there for you.

I'll never be the kind of attorney your creditors want me to be. I'll always be the kind of attorney you NEED me to be. Call me. I'll BE there for you. - Kevin Ryan, Attorney at Law