Is this a thing? I’ll be paying off my loans for the rest of my life since I got my PhD. I have no regrets and the six figure investment was worth the salary I hope to be making at some point in the near future. But can private loans be discharged through bankruptcy? I’m hoping to offset some of the payments by going this route if it’s worth it playing the long game.
Any help is appreciated.
Bankruptcy in private loans?
byu/Upbeat_Can3909 inStudentLoans
Posted by Upbeat_Can3909
6 Comments
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Sounds like it wasn’t actually worth it.
paying loans for lifetime /= worth it
It is VERY VERY VERY hard, however theres some minimal softening in several jurisdictions given the insane levels debt has gotten to and the employment prospects/COL living of economy, predatory nature of compounding interest on low information borrowers under high pressure etc
Its called an adversarial proceeding, basically you have to file bankruptcy first, then you petition for this second stage of litigation on the SL specifically and your ability to pay
Usually only see it when someone is permanently disabled in some way, elderly and destitute or theres some kind of bad faith on the lender or the educational institution
The jurisdiction, judge and administration in power all weigh heavily here
Its exceptionally unjust pretty much all debt but tax and child support is dischargeable in bankruptcy,
bankruptcy is there to incentivize people to take risks in a capitalist economy, education literally a persons first asset investment, themselves, to increase earning power and productivity in the economy, how is it not under that umbrella?
Lobbying thats why… businesses declare B ALL THE TIME, that risk is appreciated and incentivized by the bankruptcy system
I can be a wasteful asshat and buy $200,000 of Lululemon on a credit cards and be much more likely to succeed in bankruptcy than someone being crushed under underemployment and ballooning educational debt for trying to better themselves
Very broken system … i have my theories on the ulterior motives of why the student debt system operates like a permanent indentured tax on lower middle and working class people, but ive gone on long enough
The cases that succeeded and the news reports breaking them down in laymens terms are all out there in google, id suggest reading up on it, itll shed a lot of light on whats considered an inability to pay when its a student loan as opposed to other debt
Generally, no
Why in the world did you take out private loans for a PhD instead of federal?