Can You Wipe Out Private Student Loans in Bankruptcy?

Posted by Madison Newberg on October 1, 2025 at 7:00 AM

shutterstock_2198533033 shutterstock_2198533033Many Americans are dealing with student loans. While the standard for the discharge of student loans has changed, it is likely still not a dischargeable debt for many people who file bankruptcy. It is very difficult to wipe out student loans in a bankruptcy.

There are two kinds of student loans, federal or private. Federal student loans are made by the government, with terms and conditions that are set by law. Private student loans are loans that are made by private organizations such as banks, credit unions, and state based or state affiliated organizations. These loans have terms that are set by the lender. 

A federally guaranteed student loan is a student loan that the federal government ultimately backs. Private student loans however, are not guaranteed by the federal government. You may or may not have a cosigner for the loan, but it is not backed by the federal government. 

If you have private student loans you may be wondering if these loans are dischargeable since the federal government does not back them. Generally, there is no difference in how these loans are handled in a bankruptcy. Whether the loan is private or federal student loan, it cannot automatically be discharged in bankruptcy

An educational loan is only dischargeable unless excepting the debt from discharge will impose and undue hardship on the debtor. This standard is incredibly difficult to meet. Student loans are likely not dischargeable for most people who file bankruptcy, whether they are federal or private.

 

CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM

Even if you are dealing with student loans that are not dischargeable, a bankruptcy could still help you financially. Speak with an experienced bankruptcy attorney about your options. If you have questions about bankruptcy and would like to do a free consultation to go over your options, visit www.lifebacklaw.com to speak with an attorney. You will be glad you did!

 

 

Topics: Can private student loans be bankrupted?, Can I include student loan debt in bankruptcy?

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