Student Loans and Financial Aid

Can a Parent Plus Loan be wiped out in chapter 7?

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Wiki User
2015-07-15 21:34:42

Student loans are no longer dischargeable in any chapter of

bankruptcy unless you can prove that repaying the loan creates an

undue hardship on you or your family. Prior law allowed their

discharge once they had been in pay status for 7 years. The law

changed in the fall of 1998.

Proving hardship usually requires showing that you can't provide

a minimum standard of living for yourself and your dependents if

you have to repay the loan. Some courts will discharge part of the

loan on a showing that repaying it all would be a hardship.

Student loans are sometimes unenforceable due to school

closures, fraud, etc. Chapter 13 can provide a way to cure defaults

on student loans, or to pay them off over the course of the


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