As Texas residents struggle at times under the weight of overwhelming debt, many turn to bankruptcy to help get a fresh start on a financial life. Many are former students trying to make a living and pay off student loan debt at the same time. One of the most debated questions related to bankruptcy is how it affects student loans. According to Forbes Magazine, most of the time student loans are not dischargeable under bankruptcy, although there are certain situations where it may be possible.

The average student graduates with close to $40,000 in debt. As new graduates struggle to make it on lower salaries, they often find it near impossible to make even the minimum payment and still make ends meet. Because things like credit cards and mortgages can be discharged during bankruptcy but student loans cannot, many believe that the idea started with a fear that students would borrow an extensive amount of money and take advantage of bankruptcy laws when they graduated.

Student Loan Borrower Assistance provides hope for those with heavy student loans by stating the fact that those who can prove that the loans provide an undue hardship on the borrower or their dependents may be able to discharge the debt through bankruptcy. The Brunner test is used to show that the borrower cannot maintain a minimal standard of living with the debt. It also shows any additional circumstances that make it hard to repay the debt that will last the duration of the loan and that the debtor has tried to repay the loan in good faith.

Those who are struggling to repay student loans can also set up an income drive repayment plan, pay off high-interest consumer debt like credit cards before the loans or obtain a personal loan to pay off student debt. Anyone considering these options may benefit from speaking to a bankruptcy attorney before making a choice.