How rare are discharges/cancellations of defaulted student loans?

Allegedly, a borrower may apply for cancellation due to "undue hardship" or because a pre-existing condition (disability, mental condition, criminal record, etc) prevented them from benefiting from their education. However, I've heard that the Department of Education fights tooth %26amp; nail to take whatever they can from defaulted borrowers who obviously are in abject poverty with no hope of ever paying for their unusable education. I've heard of only ONE cancellation due to hardship/inability to benefit -- it was an extreme case, and the Education Department refused to give up on it until the judge finally discharged it.





Can anyone cite cases of ANY other defaulted student loans being cancelled due to hardship or inability to benefit? Or is the application process completely bogus?

How rare are discharges/cancellations of defaulted student loans?
From what I have seen the application process is completely bogus.





I *think* the reason for the application is to bury you in paperwork, which in many cases they "loose", requiring you to go through the whole process, yet again. Then once you have done it again, the two better match EXACTLY, or they are going to come after you harder.





I have a buddy who is a paraplegic due to a car accident, he is NEVER going to work, we did the forms twice, and they still send him a bill once a month, and call every two weeks. Maybe sometime in the future his parents are going to die and they will be right there, with their hands out.
Reply:Can't site another one. Unless a person became severely disabled AFTER school, then I don't think the loan should be waived.





As far as not having to pay the loan back because of a 'pre-existing' condition, that's hogwash. Obviously you %26amp; whoever approved the loan, thought that you had the ability to use the knowledge gained in order to obtain employment.





Sorry, but you owe the money %26amp; are responsible for paying it. People who don't pay up on their loans only make it more difficult for people who will.





So, get a job, quit whining %26amp; become responsible. Then, when you are due irs refunds, they won't have to keep them from you.
Reply:Well you heard of one case, I haven't known of any.


They will work with you, but don't plan on not paying at all.


If someone has gotten an unusable education, they need to get up off the couch and out of the basement and go flip burgers. Many jobs don't really care what your degree is in, just the fact that you have one is enough. You will, especially if you have a criminal record, have to settle for a job you think of as below you, or not in your field, but better that than the constant dunning you will get from the DOE.


They will grant deferments if you hit a hard patch, or allow interest only payments for a while so its worth talking to them.


But forget not paying at all.
Reply:YES it IS possible to have student loans discharged.


I know this because I did all the paperwork to have my husbands student loan discharged after he became disabled. The loan was not in default when it was discharged, but I don't know if that made a difference. Also, he didn't become disabled until after he took out the loan. Pre-existing conditions don't qualify. I have known others who have had their loans discharged because of a disability... so it's not impossible. It does require some paperwork and cooperation from doctors.





Banks and schools are not in the business of doing criminal record/background checks, mental condition screenings, etc of the people who receive fin aid from their school so I doubt any of these pre-existing conditions would never hold any water in court for anyone trying to get out of paying their debt.





I have never heard of one being done because of "undue hardship"... all the department of educations publications advertise that this is only done in EXTREME cases. Even the discharge example for ability-to-benefit example is pretty EXTREME and obvious as well....





EXAMPLE: The school gives a student loan to a student to attend truck driving school. However they can't get a job because after graduation because they are legally blind and don't and never have had a drivers license.