Video Resource: How Easy Is It To Get Rid of Student Debt?
Answer: Extremely difficult; even in cases where debtors are going bankrupt.
Useful knowledge for all students to have before they take out a student loan. Here is a link to a longish 14 minute video conversation between Bloomberg reporter and her editor discussing how difficult it is to get rid of your student loans (the first five minutes may be sufficient to get the point across):
- What makes student debt unique compared to other forms of debt?
- What circumstances allow you to get rid of student debt?
- What is an “undue hardship” and why is it important when it comes to student debt?
- What is the Brunner test? What is another test that has recently arisen to address these cases?
- What are the current court cases that could fundamentally change the way student debt is handled?
- What is your overall impression of how easy it is to get rid of student debt in situations where the student borrower is going bankrupt?
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.