It is difficult to eliminate a lot of government student loans and even bankruptcy will not help. The only method of resolving this type of loan is to show that they cause a lot of hardship to you and your finances, while declaring bankruptcy. But this is a tough point to prove because bankruptcy filing resolves all your other debts.
If you want to resolve the problem of the student loans, you should be able to prove that you are unable to repay the debt as per the schedule handed over to you and each time you make an attempt to repay as per the schedule; you have been unable to pay. You need to adopt an honest and sincere approach. Do not lie to your creditors and make a genuine effort to show that you are trying as hard as you can to get the necessary money but have failed.
It is the responsibility of the bankruptcy judge to decide the items that can be discharged and those cannot. Some judges may provide for these discharges and if you happen to get one, there is no need to repay these loans, either completely or partially. It is at the discretion of the judge to decide on it.
You should remember that though the lenders will not send you any bills when you have filed for bankruptcy as they have to wait for your bankruptcy to be discharged, the interest will still be accruing on the loan. You do not pay the loan or the interest, but once your bankruptcy is discharged, you will have to encounter a lot more problems than before.
Student loans are highly flexible, offering varied choices than the most of the other loans. If you find it difficult to pay off the student loans, talk to the lender. Inform them about the problem and you will find that they will be happy to help you out. If you find it difficult to meet the payment schedule, ask the lender to prepare a new one. Do not be afraid of talking to the lender but it will help you and prevent you from getting into more trouble. If you have failed to pay the loan, register for programs like rehabilitation programs to get out of the default. These programs are very useful if you show good faith and attempt by paying a minimum amount for a definite period of time. If you can stick to this routine, your lender will understand that you are reliable and they will help you get over the default.
Loan consolidation is another excellent alternative to bankruptcy. The Direct Loan Servicing Center, run by the Department of Education offers you various options to choose from to help you repay the loans. Their standard plan is excellent, very simple and efficient to carry out. Simply pay $50 each month till the whole debt is repaid or till 10 years are over, whichever happens earlier. Another plan requires you to pay for the next 12-30 years. It is excellent for people struggling to pay the debt and meet other expenses; but it is the costliest one as 30 years of interest makes the sizeable sum of money.
Talking to your lender if you are in financial trouble is the best bet. Though you cannot solve your debt problem immediately, knowing that you have options will put your mind at ease.