stressA college education is essential for the majority of American students. However, such a pursuit often results in excess loans and serious financial problems. Students often find loans overwhelming, but many fear that taking legal steps or working with a student loan debt attorney will leave a permanent blight on their financial futures.

Myth #1: It’s Impossible to Discharge Student Loans in Bankruptcy

According to US News, only about .1% of students try to discharge their loans during bankruptcy proceedings because they think they won’t get help. In fact, a complete discharge is rare in chapter 7 or chapter 13 bankruptcies, but they can happen. One thing you and your attorney should discuss is whether you pass the Brunner test. If paying back a student loan would prevent you from maintaining a minimum standard of living, your situation is unlikely to change, and you have made efforts to pay the loan, you may qualify for loan discharge.

Myth #2: Student Loans Will Affect Your Financial Future Forever

Many students worry that loan-related debts will negatively impact their financial prospects. Some of them have seen college classmates struggle to pay back student loans for years, even with good jobs, and thus never quite get out of debt. However, the truth is that most banks and bankruptcy advisors are sympathetic to student loan issues. Filing bankruptcy can help you break student loan payments into small, manageable pieces so they are paid off in a timely manner. Bankruptcy attorneys and other advisors will also help you set goals so you can pay off loans at your own pace.

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