The cost of college tuition has been rising at an unprecedented rate in recent years. Students have always relied on loans to make up the difference between tuition and what they manage to secure in scholarships and financial aid. That gap is widening, though, and now it’s common to graduate with more debt than their starting salary. If you’re considering filing bankruptcy because you’re drowning in student loans, you are not alone. The average student in the class of 2017 graduated with nearly $40,000 in loan debt.

How Do You Discharge Student Loan Debt?

You cannot discharge student loan debt by filing Chapter 13 bankruptcy. If making the minimum payments causes undue hardship, though, you may be able to eliminate it by filing for Chapter 7. However, since the proceedings do not automatically include student loan debt, you must take additional steps to discharge it. Fortunately, a bankruptcy lawyer can help. Your attorney will gather proof of hardship and file the motion required to include student loan debt in the proceedings. 

Are There Other Strategies for Making Loans More Manageable?

If you are not eligible for Chapter 7 but have a lot of credit card debt, too, pursuing Chapter 13 could help you regain your financial footing. It may not affect student loan obligations, but it could provide some breathing room regarding any unsecured debt. Other possible ways to reduce the financial burden of student loans include consolidating them, researching employer assistance programs, applying for public service loan forgiveness, seeking a deferment, and opting for a different payment plan, like one that’s based on how much you can afford with your yearly income.

If you’re facing an overwhelming amount of debt, turn to the Law Office of James B. Mallory III in Statesville, NC. Attorney Mallory will evaluate the kinds of debt you have and let you know which ones are dischargeable by filing bankruptcy. This seasoned attorney is well versed in the laws regulating both Chapter 7 and Chapter 13, and he can help you navigate the proceedings for either. To schedule an initial consultation and learn more about filing bankruptcy, visit his practice online or call (704) 872-1911.