What Hardships Might Influence Your Student Loans

stressCollege students often hear about claiming “undue hardship” as a way to reduce or discharge their student loans. However, the definition of undue hardship changes from court to court and judge to judge, and, as writer Elie Mystal points out, most people don’t care for “standing up in open court and saying they will be hopeless forever.”

The question then is what counts as undue hardship? TLS Logic provides a few examples that can help your bankruptcy attorney help you.

Family Deaths

The death of a parent or supporting guardian is a huge blow to anyone, but especially to a college student still in school. The death of one or both parents, or a supporting guardian, often means the elimination of a good chunk of tuition money. Many students choose to work while attending classes, adding to physical and mental stress. Students who file for bankruptcy without the right help may also experience unnecessary wage garnishment at their new jobs.

Extreme Financial Hardship

A family that was once able to provide tuition may suddenly experience financial disaster. This could include foreclosures, liens, or even homelessness. The last thing you as a student need to think about in that case is how to manage school loans. Allow student loan lawyers and credit counselors to guide you through reduction or discharge of the loans.

Change in Marital or Guardianship Status

Students sometimes experience hardship because of relationships. For example, a married student’s spouse may unexpectedly leave, causing a loss of income. A student, in or out of college, may become the guardian of a young child or have to initiate divorce proceedings. In any of these cases, paying student loans becomes a major hardship. Bankruptcy can make payments more manageable.