How to get a student loan discharged?

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How to get a student loan discharged?

About 3 years ago, I attended a IT trade school to get microsoft certifications. I took out a private student loan to pay for this. At the time of my enrollment I was in the Army Reserves and half way through the class I was put on active duty orders for pre-deployment training. I was going to miss 3 weeks of classes and I tried to withdraw from class. I gave a copy of my orders to the school and they told me I would recieve a refund for my tuition. After the 3 weeks of training, I contacted the school to check up on my refund and they told me I was not eligable since I had already passed 1 of the 4 certification tests. I did not have time to persue my refund further for I was deployed to Iraq. When I returned home from Iraq, I found out that the school had since closed. A few months ago I found out that a class action lawsuit was brought against the school and the school and Sallie Mae. The ruling was in favor of the plantiffs but the school had no assets to pay out. The judge ruled that Sallie Mae could not be part of the class action lawsuit and it had to go through individual arbitration. My interst rate on my private student loan is around 9% and I want to refinance it to a lower interest rate. I was wondering if refinancing my loan would have any effect if I try to have my loan discharged and what are the chances of my loan being discharged? I really want to get out from under this loan as soon as possible.

Asked on October 22, 2012 under Bankruptcy Law, Missouri

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Under federal bankruptcy laws student loans are specifically exempt from being discharged under our bankruptcy laws. As such your thoughts of a bankruptcy filing as to your student loan will not help you in any manner. I suggest that you may want to consult with a consumer law attorney as to your matter as to the loan being refinanced.


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