Not many people anticipate that before they thought about buying their first house, were able to legally drink, or even before they had picked up their college diploma that they would be over $30,000 in debt off due to student loans. It's safe to say that if you or someone in your family has graduated college in the past 15 years, or is planning on graduating in the future, student loan debt is looming.

Student Loan Debt Is Not Destiny

It can be a serious burden to begin adult life with immense debt. On top of that, many people feel discouraged when they find out that student loan debts cannot even be discharged in bankruptcy. But sometimes knowledge is misleading. While this generally rings true, a recent survey noted that 40% of those that included student loan debt on their bankruptcy filing wound up with some of that debt discharged. However, due to the prevalence of bankruptcy myths, many people think that even trying to get student loans discharged is pointless—leading to a mere 0.1% of those with student loan debt including it on their bankruptcy filing. If you find yourself overwhelmed with student loan debt, consulting with a bankruptcy lawyer should be the first step in determining how to best proceed with your bankruptcy filing.

About the Brunner Test

A Brunner test is used to determine whether or not continuing to pay for an education debt would cause undue hardship for an individual. Undue hardship is a requirement in discharging education debts.

This Brunner test means that:

• Paying off the loan causes the borrower to fall below the minimum standard of living
• The borrower must have made as many efforts as possible to pay the debt
• The financial future of the borrower is not likely to change

An adversary proceeding must be filed by your attorney if the Brunner test applies to you.

Other Strategies to Discharge the Loan

The very definition of an education loan can be challenged as a way to discharge the loan. An educational loan is one that was used to attend an education institution that is eligible for federal student aid programs. The loan must have been used for cost of attendance expenses.

Two arguments can apply against this definition.

• Private student loans used to pay for an ineligible school do not count as education loans
• Any part of the loan not used for educational expenses is dischargeable

You never know what may happen when it comes to student loan debt and bankruptcy. rienced bankruptcy attorney tion that can help you manage your finances, even ifTaking a moment to see if student loan debt can be managed can help. However filing for bankruptcy is an option that can help you manage your finances, even if student loan debt remains.