Going to college and landing their dream jobs may be the dream of many individuals. However, many South Carolina residents may fear the financial burden that could come along with taking out student loans in order to complete their college degrees. Indeed, numerous parties face significant struggles due to the amount of loan debt accrued while earning their degrees.
It was recently reported that more individuals are utilizing bankruptcy in order to have their loans discharged. In the past, this avenue was thought to be futile as bankruptcy law does not allow for the discharge of loans used for educational benefit unless undue hardship is proved. However, many individuals have been able to successfully use bankruptcy to address their student loans by taking advantage of vague wording in the definitions and laws.
Some individuals have argued that because the college they attended was not accredited or loans were used for other purposes, the loans they took out do not fall under the definition for student loan debt. Though student loan debt was once considered a favorable type of debt, many individuals no longer see it as such. Because considerable debt from student loans can lead individuals into a situation in which they are unable to pay rent or handle other expenses, looking into options for ways to discharge this debt may make sense.
Rather than simply accepting the idea that bankruptcy cannot help with student loan debt, South Carolina residents may wish to look further into the option. Some cases could potentially prove successful and allow individuals to move forward with less financial stress. Discussing the possibility of discharging debt through bankruptcy with experienced attorneys could help interested parties better understand the potential possibilities.
Source: thestreet.com, “Student Loan Borrowers Increasingly Turning to Bankruptcy to Alleviate Burden”, Amanda Schiavo, Dec. 27, 2016