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How to get relief from student loans

Kentucky residents may know that it is difficult to have student loans forgiven. However, there are situations in which they may be cancelled with no further obligation to make payments. For instance, loans may be discharged in bankruptcy if paying them would constitute an undue hardship on an individual. Courts will look to see that a borrower made a good faith effort to pay them off.

It may also be necessary to show that the hardship will last well into the future and that making payments would hamper a person's ability to have a minimum standard of living. A Total and Permanent Disability Discharge may be available for those who are unable to work because of a long-term disability. An individual may qualify if a borrower's physician says that the disability has existed for at least 60 months and will exist at least for another five years.

If a borrower can prove that he or she was defrauded by a college, it may be possible to have a student loan cancelled. The same may be true if a loan was taken out in a person's name as a result of identity theft. A loan may be discharged if the borrower passes away. A Parent PLUS loan may also be discharged if either the borrower or the student dies.

While student loan debt may or may not be discharged in bankruptcy, filing may make it easier to manage a borrower's total debt load. By getting credit card or auto loan debts discharged or reorganized, it may lower a debtor's monthly payment or lower his or her actual debt level. If a hardship exists, it may be possible for student loan debts to be fully or partially discharged, which may help a debtor get a fresh financial start.

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