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Private student loans can be discharged in bankruptcy, but it takes extra work. Current bankruptcy law requires proof of undue hardship and an adversary proceeding to consider the discharge of private student loans.
No. Regardless of the outcome of Bidens student loan forgiveness program, this legislation only applies to federal student loans. Private loans are a business enterprise, and the government doesnt have the authority to compel private lenders to grant forgiveness.
2005: The Bankruptcy Abuse Prevention and Consumer Protection Act extended non-dischargeability to private student loans.
To have your private student loans discharged you will need to prove that your loan was a qualified education loan and that paying off the loan would cause you undue hardship. You prove undue hardship as part of an adversary proceeding. This is an additional proceeding on top of your bankruptcy case.
You can get out of private student loan debt by agreeing to a settlement, obtaining a discharge in bankruptcy, filing a lawsuit against the loan holder, or waiting for the debt to expire. Broad student debt cancellation is a big question mark on the minds of student loan borrowers across the county.

People also ask

These loans often carry high interest rates and contain fewer rights and protections for borrowers than federal student loans. This market also lacks basic transparency and reporting requirements.
For private student loans, these periods generally range from three to 10 years. After that, the debt is considered time-barred and the lender can no longer bring legal action against you.

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