If a bankruptcy court determines that repaying your student loans would cause undue hardship

Most debtors won't be able to wipe out student loan debt but if you can be able to prove that repaying your student loans would cause an undue hardship to you, you can get rid of your student loans in bankruptcy.

Undue hardship is defined as the inability to repay the student loan debt and still maintain a minimal standard of living now or even in the future. The percentage of people that are able to prove "undue hardship" when owing a federal student loan in bankruptcy fillings are about 1%. So don't get your hopes high.

In general, bankruptcy shouldn't have any impact on eligibility for federal student aid. But if some of the student's federal student loans are in default and were not included in a bankruptcy, the student will not be able to get further federal student aid until he

If you don't make your payment, your loan goes into delinquency status ... If you still don't pay, your school, the financial institution that made or owns your loan, your loan guarantor, and the federal government can all take action to recover the money you owe for your student loan debt.

Here are effective ways to pay or eliminate Your Student Loan Debt

1) Qualify For a loan Forgiveness Program. (Usually by federal government)

2) Find State Assistance For Your Student Loans.

3) Inquire If Your Employer guves back Tuition fee. That is Tuition Reimbursement.

4) Consolidate Your Federal Student Loans.

5) This is the most effective, for a responsible citizen. Find A Repayment Plan That Matches Your Ability To Pay and pay up your loan.

You will have your federal student loan discharged

Explanation:

If a bankruptcy court determines that repaying your student loans would cause undue hardship you will have your Federal student loan discharged. this process is usually not automatic and cannot be determined by the court unless you file for bankruptcy in a action known " adversary proceeding".

The court will now consider your Bankruptcy claim in the Bankruptcy court to determine if your student loan should be discharged. the conditions for which such decision can be taken is when it is determined by the court that repaying the loan will cause you to live below the minimal living standard, cause a continuous undue hardship and also if you have tried to repay the loan before but couldn't.