If you apply for a student loan, the first warning you are likely to receive is that federal student loans are non-dischargeable in a bankruptcy. When you have student debt, you are stuck with it until it is repaid. It is important to carefully consider your need for a student loan and balance it with the likelihood that you will be able to repay it after graduation. However, it is impossible for you and other Fort Lauderdale residents to predict whether you will have financial troubles later in life. You may have obtained an education that landed you a good job, but years later you might have trouble paying your bills.
One of the options you might consider in times of financial hardship is filing for bankruptcy. A bankruptcy may discharge credit card debt, medical debt and other loans, but not your federal student loans. What happens if your financial situation makes it impossible to make payments on your student loans? According to the United States Department of Education’s Federal Student Aid website, speaking to your student loan officer promptly is important if you find yourself in this situation. You might be able to defer your loans for a few months while you deal with your situation or restructure your payment plan to make it easier to make your monthly payments.
In extreme cases, student loan debt might be forgiven or canceled. One of the most likely scenarios is becoming disabled and permanently unable to work. However, getting a student loan canceled for a hardship is rare and would likely involve exhaustive legal procedures. A more effective solution might be to handle your other types of debt through bankruptcy or by paying them down while your student loans are temporarily deferred, so you are better able to repay your non-dischargeable debt. Since managing student loan debt can be complex, this information is not meant to replace the advice of a lawyer.