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Student loans not Qualified Education Loans

Started by mdarby, October 22, 2020, 05:04:11 pm

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So I made a terrible choice to take out private students loans in 2008-09 and now they have of course ballooned to being huge. One is 175k and the other is 50k.  Ive been doing research and have been finding information on Qualified Education Loans and how not all student loans are qualified education loans and I believe my student loan may fit that.  I filed a bankruptcy in 2012 and was just told "student loans cant be discharged" so I didn't question anything.  Now Im being told that only Qualified Education Loans can not be discharged and that not all private student loans qualify as that. It seems as if my student loans do not meet the criteria for Qualified Education loans based on what Ive researched.  NOw i need to know what to do next. Does anyone have any information on this?


Who did you borrow from? Most loans are qualified education loans IF they are only used to fund education. Examples of non-qualified education loans are credit cards, personal loans with other uses, etc.

Technically, any private loan that was only used to fund education is considered a qualified education loan.

Finally, even qualified education loans can be discharged in bankruptcy. It's just rare because you have to pass the Brunner Test for undue hardship. See this: Bankruptcy and Student Loan Debt.


Maybe you need to seek help on your case: either a (free) student loan counselor or pro bono attorney, so you can see things clearly. Normally, qualified (and non-qualified) education loans can be discharged, depending on your circumstances. It looks like you took out the loan around the financial crisis of 2008. Who was the lender?

It's important to know because bankruptcy laws don't make it easy to get your student loan debt eliminated, but it's possible to discharge student loans in bankruptcy if you meet a high bar. Specifically, you have to prove repaying your loans would be an undue hardship.

While different courts use different tests to evaluate whether repayment is an undue hardship, many use a version of the Brunner test. There are a few parts to it, including whether you've made a good faith effort to pay your loans, whether you'll be able to maintain a reasonable quality of life if you're made to repay them, and whether repayment difficulties are likely to persist for a long time.