Discharging Student Loans In Bankruptcy

(FinancialHealth) – Student loan debt has been a topic of controversy for quite some time. In 2019, debt levels reached a whopping $30k average – the highest in a decade. The Federal Reserve estimates more than $1.6 trillion of the national debt is from student loans alone.

Despite so many students falling behind on this particular debt, student loans are very rarely discharged during the bankruptcy process. Two 2020 court cases in New York, however, may have changed that precedent. One case had nearly $200k in student loan debt discharged, while another saw almost a half million resolved.

Our friends at Republican News have more details on these cases and how they may impact student loan debts during bankruptcy in the future. At the very least, we predict we may at least see some form of legislative reform.

Copyright 2020, FinancialHealth.net

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