According to the Consumer Financial Protection Bureau, there is approximately $1 trillion of student loan debt in the United States. Privately funded student loans make up $150 billion of this burden. Making matters worse, private student loan debt is nearly impossible to discharge in a bankruptcy. This is because the current standard to include a private student loan in a Chapter 7 bankruptcy is “undue hardship.” The level for this standard is quite high, with court cases allowing the discharge of this debt where a young person was severely and permanently disabled. Consequently, many young people who are employed and healthy are stuck with student loan payments they cannot keep up with.
Debt settlement done by a qualified debt settlement attorney is currently only way the majority of young people burdened by private student loans can pay less than the full amount owed. Debt settlement done by a qualified attorney results in a reduction of the principal balance owed on the debt, making repayment in full a possibility. Contact a qualified debt settlement attorney if you or someone you know, can no longer afford their private student loan payments.