Early on in the first semester of my Sophomore year (2013-2014), I had to leave my university on a medical leave of absence. The reasons for leave were psychological/emotional in nature, arising as the result of a complicated childhood and family history. All of my loans for this year were returned, but last year's heavy load remains. I had stellar marks my first year. Since leaving University, I have lived at several retreat centers and sought a great deal of emotional therapy from various sources. Now, as I'm just coming out of recovery, my private student loan, Direct Loan, and Direct Plus loan are all collecting in early May (about a month). They total in ~$40,000 and the minimum monthly payment is ~$350. I am unemployed, and have no intention of going back to University. Help!
Generally, the only way out is if you are so disabled that you can no longer work. Use the "find a lawyer" tool on AVVO to get a consultation with a debtor bankruptcy attorney. Student loans are not generally dischargeable, but if you are so disabled you can not work, you can file an adversary proceeding against the student loan co. in your bankruptcy and see if that works.
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Whether the loans are dischargeable will generally be determined by the terms of your loan documents. Often the contract will contain special circumstances for the discharge and you must demonstrate your compliance with those terms. Bankruptcy will not discharge the college loan; however, if you can prove disability or hardship to the bankruptcy court the court may under specific circumstances discharge the debt. You should consult an attorney who specializes in debtor/creditor matters or bankruptcy for more specific and detailed answer to your questions.
Best of luck!
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