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NBC News’ Allison Linn joined us for a live web chat Thursday to discuss her story on people who went back to school during the weak economy and are still struggling (you can read the story here.)
Here’s one of her answers to questions from the live chat. (See below for the full Q&A):
Katie asked:
“How easy is it to discharge student loans in Bankruptcy?”
Allison replied:
“The short answer is: Extremely difficult. The way the laws are structured, in most cases a person who files for bankruptcy will not have student loans forgiven in the process. That's one big reason why you need to be really careful about how much student loan debt you take on.”
Here’s the full chat archive:
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Even if you (the student) and me the parent commit suicide, the student loan vultures will still come after us. So not only is bankruptcy not an option, death itself is no relief in this predatory system that clearly is a major factor in the slow recovery as students and parents are clinging desperately to the sides of the black hole of student loans that many will never get out of, even when they die !
It is a joke, but change is coming. Like healthcare and housing, jobs don't pay enough to satisfy the debt and they will have no choice but to write off most of this debt at some point.