Is it Possible to discharge student loans without going bankrupt?
: Is it possible to have a student loan discharged (older then 7 years) with out claiming bankruptcy. I do have other debts that have gone to 3rd party collection agencies but I’m working with almost all of them to repay the relatively small debts. My student loan is the biggest obstacle and I haven’t been able to make payments on it for sometime. Bankruptcy is the last resort for me and I think I’d be okay if I could just get rid of this student loan. Answer: A student loan can only be discharged by paying it in full, making a settlement with the lender, by filing a consumer proposal, or by declaring bankruptcy. You could contact the lender and see if you can work out payment arrangements. If not, it may be necessary to consider one of the other options. If you haven’t been able to make payments on it for some time, it is likely that your income isn’t sufficient to continue servicing it even if they did reduce the interest, so a proposal or a bankruptcy may be the only logical option.
