Legal Question in Credit and Debt Law in Pennsylvania

Re: repayment of student loans

Four is better than three...The three answers by my colleagues point up the difficulty in responding to questions placed over the internet...specific answers require specific facts. The first attorney's answer requests you to contact him so he can review documents...that is the best advice. Nitzberg's advise is helpful only if it is available...and no one can know unless the loan agreement is reviewed. Usually, there is some clause in the agreements that allow for a reduction and/or elimination of the debt if there is extreme hardship shown. If not, the loan program itself might have a hardship review. Other considerations may affect hardship reviews. For instance, was the borrower in default already? How soon after the loan was executed and funds disbursed did the hardship begin...Your fact summary does not provide sufficient information to provide a reliable opinion. WE all agree that student loans are not normally dischargeable in bankruptcy...Note "normally", but they can be if EXTREME HARDSHIP is demonstrated...there are other bankruptcy considerations as well so before going that route you ought to sit down with a good bankrutpcy lawyer for detailed advice. Good luck.

Re: repayment of student loans

Student loans are only dischargable in bankruptcy for extreme hardship. Your sons case may qualify. I would have to review the documents in regards to your husband to see what liability he may have.

Re: repayment of student loans

Ny sympathies for your son's injury. My best wishes for his recovery.

The first step is to inform the loan institution (bank) of the health issues and obtain a suspension of interest. Then fill out the paperwork for forgiveness of the loan.

The 'forgiveness' will be granted if the disability is permanent. Your husband's obligation will be more complicated, but the same process will indemnify him as well.

Bankruptcy will not discharge this debt for either party.

My sympathies and best wishes.

Re: repayment of student loans

I agree with the advice given by Atty. Nitzberg earlier.

You do not indicate if these are government or private loans. Government loans come with terms which may allow for the discharge of the debt, or suspension of the payments, under the circumstances you have mentioned (read your loan documents).

However, if it is a private loan (which I suspect, given that a co-signer was needed--government loans are normally in the name of the student alone) then the terms may not be so lenient as a government loan. Again, read your loan documents to determine your rights and obligations in this case.