Can I File Bankruptcy On My Student Loans?

When you are a student, it is more than easy to accumulate mounds and mounds of student debt, and most students do not even realize exactly how much they owe in student loans until they graduate and hit what is known as the real world. It is only then when repayment begins and the student becomes strapped financially to make multiple payments to many lenders. The truth of the matter about filing bankruptcy on your student loan debt is not possible. Strict governmental guidelines prohibit students from ridding themselves from student debt simply by filing bankruptcy protection. Bankruptcy is one of the few debts that do not qualify for bankruptcy. No easy outs there.Other OptionsStudents have other options when it comes to paying off their student loans, however. The best option available for students is to file for student loan consolidation, which is the process of rolling all of their student loans into one, usually with a typical lender. Most students leave college indebted to multiple lenders, from private banks to the U.S. Department of Education. Paying these separate lenders (some students are forced to pay several each month) can be complicated and confusing. If you opt for student loan consolidation, you can pay one lender each month, and normally you can qualify for a lower rate on your student loan debt overall. Most loans that are written for students are written at varying rates of interest. With student loan consolidation, one interest rate governs all of your student loans, which can make it easier to pay your student loans off faster than making many payments to various lenders.How To Apply For Student Loan ConsolidationApplying for student loan consolidation is simple and easy. You will need to choose a student loan consolidation lender who will write your loan. There are many different loan companies offering this type of service because student loans are low-risk in that the lender knows that you cannot walk away from your debt by falling bankruptcy. It pays to shop around and compare rates on this type of consolidation because the interest rate that you pay can vary greatly from company to company. You will need to provide your new lender with all of the information regarding your existing student loans, including loan servicer name and address, account number and the amount that you owe.When your student loan consolidation is approved, your new lender will pay off your existing lenders and then you will pay the new lender. It is important that you continue to make your scheduled payments on your student loans until your consolidation is approved, or your credit score can be affected. Once you have been approved for your student consolidation loan, your new loan servicer will send you a payment schedule that you will follow until the loans are completely paid off.Becoming a Successful BorrowerIt is important that you pay on your student loans as agreed to avoid negatively impacting your credit score. If you are paying via mail, always allow ten days for your payment to arrive and to be processed by the student loan consolidation company. A better way to pay is to schedule an automatic deduction from your checking account each month in the amount of your student loan payment, or to pay online where you can pay instantly.