Can a student loan be forgiven in any way?

Question

I went to a technical college about 8 yrs ago. I went the first semester and dropped out half way due to contunious bomb threats ( yes, we have to leave the school and walk across the block almost everyday for 2 weeks straight), alot of students dropped the semester because of this. I went back the next semester and dropped out towards the beginning due to an illness my child had at the time. I was young and didnt really think too much of it. Well, now I owe $10,000 which I cant file bankruptcy on and its on my credit. I never recieved ANY college credits for either semester and I really cannot afford to pay this back. Is there anything I can do about this? Will it ever come off my credit report?

Answer 1

No, it will never leave your record. Student loans are shielded from any bankruptcy law. Many others in the same boat you're in. Any breaks at all come from those that could stay current on their loan. Student loans are guaranteed by the government to a monopoly lending agency. Tech schools charge the highest, maximum tuition possible. A third-party "guaranter" acts like a hired gun to maximize the penalties and interests on those student loans which have gone "nuclear" by assuming your loan. When the loan company finally gives up on you repaying, they IRS swoops in and wants 40% of the loan value as a capital gains -- like you won the lottery. Stay informed about any changes with the link below.

Answer 2

No. Student loans are there forever. There are only two legitimate ways to get out of them:
1) Teach for 5 years in an inner-city school or
2) Die.

Neither option is really attractive. I've researched this...they give no exception if you are in the military (you just get a deferment),or the Peace Corp (you cannot owe over a certain amount and you just get a deferment).

Make sure that you call the toll free number and make some sort of arrangements. If you go into default, they have the right to take your tax return and garnish your wages. If you explain your situation, they will usually give helpful advice. Eveyone I've ever dealt with has been really nice.
Good luck!