Can student loans actually be discharged in bankruptcy?

Yes, it is possible for student loans to be discharged in bankruptcy, but it is not automatic. Unlike other debts like credit cards, student loans generally require an additional step called an Adversary Proceeding (a lawsuit within your bankruptcy case) where you must prove that repaying your loans would cause "undue hardship." Many people are told it's impossible, but with the right strategy and evidence, it is achievable.

What is "undue hardship" in the context of student loans?

"Undue hardship" is the legal standard you must meet to discharge student loans in bankruptcy. Most courts, including those in New York, apply the "Brunner Test," which typically requires you to prove three things: Current Inability to Maintain a Minimal Standard of Living: You cannot afford your basic living expenses while also making student loan payments. Persistence of Hardship: Your financial struggles are likely to continue for a significant portion of the loan repayment period. Good Faith Effort: You have made sincere attempts to repay your loans before seeking discharge. Proving these elements requires compelling evidence and often, expert legal guidance.

Does the "Brunner Test" apply to all student loan discharge cases?

The Brunner Test is the prevailing standard in most federal courts, including those governing student loan discharge in New York, Long Island, and Westchester. While some circuits have slightly different interpretations or "totality of the circumstances" tests, the core principles of proving current inability to pay, persistence of hardship, and good faith efforts remain central to almost all undue hardship student loan tests.

Does it matter if my student loans are federal or private for discharge?

Both federal and private student loans can potentially be discharged in bankruptcy if you meet the "undue hardship" standard. While the process of proving undue hardship is similar, federal loans may offer more alternative relief options outside of bankruptcy that private loans do not. This distinction can influence the "good faith effort" prong of the Brunner Test.

Your Questions Answered: Student Loan Debt Relief FAQs

Navigating student loan debt can be complex and overwhelming. At Float Debt Solutions, we believe that clarity is the first step towards financial freedom. This Frequently Asked Questions (FAQ) page is designed to provide direct, expert answers to the most common queries we receive about student loan discharge, bankruptcy, repayment options, and how our services can help you.

Led by Natalie Jean-Baptiste, a seasoned student loan expert and attorney with over 12 years of specialized experience, we're here to demystify the process and equip you with the knowledge you need. If you're seeking student loan discharge FAQs, considering bankruptcy debt relief, or simply trying to understand your options, you've come to the right place.

General Student Loan Discharge & Eligibility

Can student loans actually be discharged in bankruptcy?
Yes, it is possible for student loans to be discharged in bankruptcy, but it is not automatic. Unlike other debts like credit cards, student loans generally require an additional step called an Adversary Proceeding (a lawsuit within your bankruptcy case) where you must prove that repaying your loans would cause "undue hardship." Many people are told it's impossible, but with the right strategy and evidence, it is achievable.
What is "undue hardship" in the context of student loans?
"Undue hardship" is the legal standard you must meet to discharge student loans in bankruptcy. Most courts, including those in New York, apply the "Brunner Test," which typically requires you to prove three things:

Current Inability to Maintain a Minimal Standard of Living: You cannot afford your basic living expenses while also making student loan payments.

Persistence of Hardship: Your financial struggles are likely to continue for a significant portion of the loan repayment period.

Good Faith Effort: You have made sincere attempts to repay your loans before seeking discharge. Proving these elements requires compelling evidence and often, expert legal guidance.
Does the "Brunner Test" apply to all student loan discharge cases?
The Brunner Test is the prevailing standard in most federal courts, including those governing student loan discharge in New York, Long Island, and Westchester. While some circuits have slightly different interpretations or "totality of the circumstances" tests, the core principles of proving current inability to pay, persistence of hardship, and good faith efforts remain central to almost all undue hardship student loan tests.
Does it matter if my student loans are federal or private for discharge?
Both federal and private student loans can potentially be discharged in bankruptcy if you meet the "undue hardship" standard. While the process of proving undue hardship is similar, federal loans may offer more alternative relief options outside of bankruptcy that private loans do not. This distinction can influence the "good faith effort" prong of the Brunner Test.

Bankruptcy Process & Your Student Loans

What is the process for student loan discharge in NY bankruptcy?

If you file for Chapter 7 or Chapter 13 bankruptcy, you must then file a separate lawsuit called an Adversary Proceeding within your bankruptcy case. In this proceeding, you present evidence to the court (and often to the student loan lender/servicer or the Department of Education) to prove "undue hardship." The court will then determine if your loans, or a portion of them, should be discharged. This specific action is crucial for can student loans be included in bankruptcy NYC.

How does bankruptcy affect student loans in New York if they are not discharged?

If your student loans are not discharged in bankruptcy (meaning the court does not grant the undue hardship finding), the loans will generally survive the bankruptcy case. This means you will still owe them, and lenders can resume collection efforts once your bankruptcy case is closed or the automatic stay is lifted for student loans. However, the bankruptcy may eliminate other debts, freeing up income to better manage your student loans or explore alternative repayment options.

What documents do I need to prepare for a student loan undue hardship claim?

To prove undue hardship, you'll need extensive documentation, often including:

Detailed income and expense statements
Tax returns (several years)
Loan statements for all student loans
Medical records (if health issues impact your income/expenses) Disability benefit statements (if applicable)
Proof of consistent job search efforts
Evidence of attempts to enroll in repayment plans or other relief options (demonstrating "good faith effort").
Any other documents that clearly illustrate your financial struggle and its likely persistence.

Alternative Student Loan Relief Options

What are the best student loan repayment plans in New York?

The "best" repayment plan depends entirely on your individual circumstances. For federal student loans, options include:

Standard Repayment Plan: Fixed monthly payments over 10 years.
Graduated Repayment Plan: Payments start low and increase over time.
Extended Repayment Plan: Lower fixed payments over up to 25 years.

Are there any student loan forgiveness options in NYC besides bankruptcy?

Yes, several federal programs offer student loan forgiveness options in NYC and nationwide:

Public Service Loan Forgiveness (PSLF) New York: For borrowers working full-time for qualifying non-profit or government organizations after 120 qualifying payments.
Teacher Loan Forgiveness: For teachers who work for five complete, consecutive academic years in low-income schools.
Total and Permanent Disability (TPD) Discharge: For borrowers who cannot engage in any substantial gainful activity due to a physical or mental impairment.
Closed School Discharge: If your school closed while you were enrolled or shortly after you withdrew.
Borrower Defense to Repayment: If your school misled you or engaged in other misconduct. It's crucial to understand the strict eligibility criteria for each of these student loan debt relief programs NYC.

How to get out of student loan default NY?

If your federal student loans are in default, you typically have three main options to get them out of default:

Loan Rehabilitation: Make 9 voluntary, reasonable and affordable monthly payments within 10 consecutive months.
Loan Consolidation: Consolidate your defaulted loans into a new Direct Consolidation Loan.
Repaying in Full: Pay the entire defaulted balance, including accrued interest and collection costs. Each option has specific requirements and benefits. We can help you determine the best strategy for your situation in student loan default help Manhattan, Brooklyn, Queens, or wherever you reside.

What about private student loan relief programs?

Private student loans generally do not offer the same federal forgiveness. Relief for private loans is more limited and often involves direct negotiation with the lender, refinancing, or pursuing discharge through bankruptcy's undue hardship test. Our student loan expert can help you assess your limited options for private loans.

Working with Float Debt Solutions

Who is Natalie Jean-Baptiste and what is her experience with student loans?

Natalie Jean-Baptiste is the founder of Float Debt Solutions and a highly experienced bankruptcy attorney with over 12 years of specialized focus on student loan discharge. She has helped clients discharge nearly $1 million in student loan debt and has personally navigated her own six-figure student loan debt through bankruptcy. Her expertise and personal journey make her a unique and empathetic student loan expert and guide.

Is the online course right for me if I want to discharge my student loans myself?

Our student loan bankruptcy course online is designed for motivated individuals who want to take a DIY student loan relief approach with expert guidance. It provides a step-by-step blueprint, demystifying the legal process and preparing you to manage key aspects of your own undue hardship case. It’s an incredibly cost-effective way to access high-level legal strategy.

When should I consider a personalized coaching session instead of the online course?

A student loan coaching session is ideal if you:

Have complex, unique questions about your specific situation.

Need personalized analysis of your eligibility for discharge.

Are already engaged in the process and need targeted guidance or strategy review.

Want direct, one-on-one consultation with Natalie to clarify your options and next steps. These sessions provide high-value strategic insights at $300/hour.

Do you offer legal representation for student loan discharge cases?

Float Debt Solutions primarily offers expert coaching, consulting, and educational resources through our online course. While Natalie Jean-Baptiste is a licensed attorney, our services focus on empowering you with the knowledge and tools for DIY student loan relief, rather than providing full legal representation (filing papers in court on your behalf). If your specific situation requires direct legal representation, we can provide general information on what to look for in a student loan attorney for your jurisdiction.