The student loan debt crisis in America has been a growing issue for years, but recently those suffering from student loan debt received a big win. President Biden announced a forgiveness of some student loan debt for eligible borrowers. Although, for many Americans the amount of the forgiven debt will be just a drop in the bucket in relation to the overall amount of their student loan debt. But what or who can help a struggling debtor with the remaining student loan debt? Can it be discharged in a bankruptcy? 

Since about 2000, college tuition has increased massively in most places. At the same time, banks have remained eager to lend these students lots of money, even as credit requirements elsewhere tightened. As a result, Americans now owe over $1.5 trillion in education debt. If everything goes as planned for recent graduates, paying off student loans is usually not a problem. Many people might have to put off large purchases for a few years, but that’s a price most are willing to pay.

But as we know, everything does not always go according to plan. That’s basically the reason that the United States has such a generous bankruptcy law. In most cases, the debtors simply miscalculated, and they deserve fresh starts.

The average debt-laden college graduate has almost $30,000 in student loans. That amount has increased 25 percent since 2008. Even with low interest rates and extended repayment periods, the monthly payment is often several hundred dollars a month. That’s a lot of money for anyone, and especially for young people. Quite understandably, many of these individuals delay major purchases and are overly-cautious with their money.

Wesley Scott is the managing partner at Minnesota’s oldest bankruptcy law firm, Kain & Scott. On September 14, 2017, Mr. Scott met with Senator Franken’s team, in Washington D.C., to discuss discharging student loan debt in bankruptcy.