Proving the “undue hardship” requirement to discharge your student loans is a very difficult task. But while this one exception for discharge is reserved for extreme of economic situations, in some situations your student loans may be partially discharged.
For instance, a 62 year old man with no dependents who could not find public or private employment in his educational field could not get a full discharge on his loans. The man had a minimal income which consisted of a part time salary and some security benefits.
The court ruled that he was capable of maintaining a minimal standard of living if required to repay his student loan obligation of about $20,000. That is because the lender had reduced his debt of about $108,000, bearing interest at 7.75%, to $20,160 at 0% interest. Had the lender not reduced his debt, it is likely that there would have been a full or partial discharge of the man’s loans.
In any case, if you are hoping to get your all of your student loans discharged you might be disappointed. In some cases, “undue hardship” may be granted to debtors who suffer from a severe medical condition that prevents them from finding employment. Regardless, if you think you have a good case for full or partial discharge of your student loans, make sure to seek a reputable bankruptcy attorney to guide you in the right direction.