Has anyone discharged their student loans?

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I'm approaching year 5 without a fulltime job. I had a 4 month temp job (about 5 hrs a week) 3 yrs ago and that's it. I'm in the process of getting an iron clad diagnosis to qualify for VR programs and things like Non Pareil and Specialisterne. I don't think I'd be able to pay off my massive student loans with one of these jobs but I remembered that they could be dismissed for certain disabilities. If it has effected your ability to get employed for the past 5 years or will affect your employment for the next 5 years you're a candidate. I've got enough student loan debt to buy a house, a nice house. I'm talking well into the six figures for 3 STEM degrees, the last of which was in a field that typically starts off around $100k per year but I can't get hired. I'm over-educated and under-experienced. I've effectively been frozen out and need to start over again and this looks like my best bet.

I think you have to qualify for Social Security to get the student loans dismissed and that is hard to do. Used to be, you could use a hardship clause under the BK code but that was just as hard (a secretary at a US BK court told me that in her 30 year career, she only heard of 2 cases where that happened) and I think Congress closed that loophole in 2005.

I was told that I could qualify for SSI after I had an iron clad diagnosis. Like most people here I have money issues and can't just pay to have one. I have to play the waiting game (1 year wait) and then wait for SSI approval.

Why isn't your current diagnosis acceptable?

1) It's old (2001)

2) The original diagnosis was for avoidant personality disorder but noted that it was only because I was right on the threshold for being diagnosed with ASD and further observation is needed. I'm now well over the threshold.

3) My copy of the original documentation was in a safe that was stolen

4) The state (who paid for it) destroyed their copy

5) They felt my rediagnosis wasn't intensive enough

6) My college destroyed their copy but have documentation of all of the services I received which is enough to show that I have a disability but not specific enough.

No. It's still in place.

The problem is that courts have ruled that hardship = "utter hopelessness" and even then they aren't inclined to grant it.

I keep hoping they will reverse this nonsense in bankruptcy law.

Until then, I keep any savings off the grid. I don't have anything of real value in my name, and I document all of my efforts to find a "good job" (largely every application/resume I've sent out and any response I've gotten).

In the USA, there are two repayment plans (ICR/IBR) that "forgive" what's not paid off after 25 years. It becomes taxable income, but the IRS (currently) uses a form to determine your tax liability based on your current income/assets. So, if you're dirt-poor, you might not owe anything.

If nothing changes, I might file for bankruptcy 5 years from this date and argue that the tax liability is a de facto hardship. Case law supporting this position has already happened where the court granted a discharge of student loans.

Hopefully the student loan bubble pops before I get to that point.

I'm resurrecting this thread to ask (though I'm almost afraid to) is it possible if you get SSI to get your student loan debt discharged? I can't work and I'm optimistic it's just a matter of time until I get approved for SSI. But I still have six figures in debt hanging over me like a whale. Any info is appreciated.

For studies in programs students can take long-term loans here [url]/url] simply filling in the application.

Last edited by B19 on 28 May 2020, 4:51 pm, edited 1 time in total.: spam

Yes, and about 2-3 years after graduation, too!  Although, back then (1982) there was more demand for MSEEs.