For federal student loans is there relief of debt on unforseen extenuating circumstances?

Student loans are difficult to erase in bankruptcy, but not impossible. The general standard is one called the Brunner test which requires a showing that 1) the debtor cannot maintain, based on current income and expenses, a “minimal” standard of living for the debtor and the debtor’s dependents if forced to repay the student loans; 2) additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and 3) the debtor has made good faith efforts to repay the loans. Your situation may qualify for this undue hardship category. I suggest you consult with an experienced bankruptcy attorney in your area to explore this option further.

There are also adminsitrative options available outside of bankruptcy court. There are attorneys who devote some or maybe all of their practice to providing assistance to consumers with student loan debt. You can find one on or use the link below to find one.

If these are federal loans, then you may have options. If she is not working, she might be eligible for income based repayment and possibly have a payment of $0.00 per month. There are other factors involved. You should speak with a student loan attorney. We do exist.

I understand your situation given the condition of your two kids. As far as bankruptcy, student loans can be discharged in bankruptcy, but the standard is very, very difficult to meet. You can find other options besides bankruptcy: like taking advantage of a different repayment plan. Depending on the family income, you may be able to pay a low amount and even nothing for a period of time. Keep in mind that depending on the type of loan your wife took, certain loans accrue interest even when in forbearance and/or deferment. I hope this perspective helps you find other options or understand the process. You can also contact a bankruptcy attorney for more guidance. You can find one by searching through this website or you can visit the National Association of Bankruptcy Attorneys (NACBA) at their site to find one.

Student loans are a very big issue for many, and with your circumstances, it sounds like especially difficult for your family. Your best options is likely an Income-Based Repayment Plan. Bankruptcy is an option that some consider, but unless your ability to earn a livable wage and pay bills is so limited (usually because of age or disability), then they are dischargable. The factor the Court considers are: 1) If you are forced to repay the loan, you would not be able to maintain a minimal standard of living; 2) There is evidence that this hardship will continue for a significant portion of the loan repayment period; and 3) You made good-faith efforts to repay the loan before filing bankruptcy (usually this means you have been in repayment for a minimum of five years). Very few people ever get their student loans discharged. But meeting with a bankruptcy attorney, and discussing all the details of your situation, you will have a lot better of an idea of whether it is an option your should consider/attempt. As for the Income-Based Repayment Plan (IBR Plan), after a consolidation of all your federal student loans, your payment is based on your income (or your household income). If your wife has student loans, but you file taxes together, the program considers your household income. If you file taxes separately, the program only consider's your wife's income. Below is a link to information about the different plans that are offered. While interest still accrues in this plans if the payments do not cover any interest, there are limits to how much will be added. There is also loan forgiveness after making your payments for a certain amount of years. This option at least ensures your loans report as being paid and current on your credit report, and there is potential for them being forgiven in the future. Some lawyers will help individuals pursue an administrative discharge of their student loans. This has nothing to do with bankruptcy. 's website can help you find a lawyer who does specialize in that process. This not an easy process, but it can be easier than having them discharged in bankruptcy.