According to State Senator, Jennifer Shilling, Wisconsin, comes in at 10th place across the country for the number of debt-ridden college students. An estimated 67 percent of residents who have graduated from four-year colleges have student loans to pay off. Further, student loans currently hold second place in the nation as the largest consumer debt.

People attend college with the goal of bettering their lives and making a good income. Unfortunately, the reality for college graduates is that they still find it very difficult to pay their loans off even though they have acquired a good education. In the case of federal student loans, it is particularly difficult to acquire debt relief.

Discharging student loan debt by filing a Chapter 7 or Chapter 13 bankruptcy is not a simple prospect. However, you should know that it is not impossible to find debt relief for your student loans through bankruptcy. If you can show that paying off this debt would cause you and your family undue hardships, it may be possible to include your student loan in your bankruptcy.

You will need to file a separate action called an adversary proceeding to request student loan relief. This action asks the court to consider whether repaying the debt will cause undue hardships in your family. Even if you cannot include your student loan, filing a bankruptcy can still help you find debt relief. At the very least, it may free up some of your income so that you are better able to make your loan payments.

As with most financial problems, it is wise to seek a professional legal opinion about your options. A bankruptcy lawyer can provide for additional advice about debt relief solutions.

Source: Federal Student Aid, “Discharge in Bankruptcy,” accessed Nov. 08, 2017