How Bankruptcy Effects Your Stafford Loan | 08.03.09

Posted in Student Loan Links By Kristin Morris

Stafford loans offer forgiveness potential to many borrowers. Among those forgiveness conditions include becoming permanently disabled, if the school you were attending closed before you could complete your degree program, identity theft, as well as public service employees and teachers who meet certain criteria, but what about bankruptcy?

If the court makes a ruling that repayment would cause “undue hardship” than your Stafford loans can be forgiven. This is a rarity, but it does happen.


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