Is it True I Can Eliminate My Student Loans in Bankruptcy if I Just Stop Paying Them?

“Dear Steve,

I currently have 58,000 in private loans and 98,000.00 in federal loans and I currently have no clue what to do. My private loan provider (the wonderful sallie mae)….wants 600.00 a month, and the federal goverment wants 450.00 a month. I am a teacher and these payments are just not possible….some people told me that if I let them go into default and once it goes into collections I would then be able to claim Bankruptcy…. o and bty my interest rates on my private loans are 6.8 and 4.8 on federal….I really have no clue what to do.. I am glad to have a Bachelors and Masters, but in the end was it worth it????? Please any advice would be great!!!!!”

student loan default

You should not let your loans go into default in hopes of discharging them with bankruptcy. That would be unwise and an untrue assumption.

The good news is you are a teacher and may be eligible to have your federal student loans forgiven after ten years of consistent on-time payments. See the Public Service Forgiveness section in The Ultimate Guide to Dealing With Student Loans You Can’t Afford.

How we deal with the Sallie Mae loans is also dependent on if they a federally guaranteed or not. Some are and those can consolidated and included in one of the reduced payment programs laid out in the guide.

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.
Damon Day - Pro Debt Coach

Steve Rhode

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