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Student Loan Debt Discharged in Bankruptcy for 63-year old

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As I have discussed in the past, student loan forgiveness (discharge) in Bankruptcy is taken on a case by case basis.


  • 63 year old Chapter 7 Debtor was a cancer survivor.
  • $43,253 in Student Loans
  • U.S. Department of Education advised her to take advantage of the income-based repayment options to her (ICRP Program).
  • Debtor had been unemployed but was now looking for work.
  • Owned car and home but both needed significant repairs.
  • Debtor had not purchased new clothes in almost a year, did not have health insurance and had not purchased a significant appliance in over 10 years.
  • Debtor lived frugally.

Court Findings:

  • If Debtor participated in the student loan repaying program at for 25 years at age 63, she would face tax liability at age 88 and would be an undue hardship.
  • More likely than not, debtor would not be able to find a job and only income most likely would be $800.00 per month Social Security.
  • Court looked at the totality of the situation.
  • Did not require debtor to participate in the U.S. Department of Education’s repaying program as they suggested.
  • Student Loan was discharged for this Debtor in his Chapter 7 Bankruptcy.

Discharge of student loans is possible; taken on a case by case basis.