What can I do if I have $195,000 in student loans and see no way to ever pay them off?

Get Legal Help Today

secured lock Secured with SHA-256 Encryption

What can I do if I have $195,000 in student loans and see no way to ever pay them off?

I currently have about $195,000 in student loans, a $130,000 of which are in private loans. I started college 9 years ago and and graduated with a BA in graphic design this year, so some of these loans have been accruing interest for 7 years at high interest rates. My 40 hour entry level graphic job pays me $1100 a month and Sallie Mae has set my loan payment at $1400 a month. I have no other debt and no car payments. I see no way I will ever earn enough to be able to pay these loans and maintain a minimum standard of living for myself, let alone ever having a family. What can I do to get help?

Asked on December 28, 2011 under Bankruptcy Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Try filing for bankruptcy:

1) Fully private loans--and by fully private, I mean not in any way guaranteed, backed, etc. by government--should be dischargeable in bankruptcy.

2) Government-backed, etc. student loans are normally not discharageable; however it is possible--though very rare--to discharge them if you can show "undue hardship." That is essentially that you can barely afford just to live, even at or just above the poverty level, and have no reasonable chance of that improving--especially if you can't eliminate the loans. Less than 1% of people who claim undue hardship will be granted the discharge, but from what you write, it is at a least worthwhile for you to try.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption