managing student loans

Bankruptcy or Better

Borrowers who fall behind on their student loans sometimes think bankruptcy will solve their problems. Why isn't this true?

1. Bankruptcy is illegal in some states.
2. Student loan debt is not considered during bankruptcy.
3. Student loans generally can't be discharged like other debts.

"C" is correct. Student loan debt usually can't be discharged through Chapter 7 bankruptcy. Student loans can be included in a Chapter 13 repayment plan, but they must be repaid in full.

Obtain financial advice and support from a reputable nonprofit credit counseling agency like Guidewell Financial Solutions instead.