How rare are discharges/cancellations of defaulted student loans?
Allegedly, a borrower may apply for cancellation due to “undue hardship” or because a pre-existing condition (disability, mental condition, criminal record, etc) prevented them from benefiting from their education. However, I’ve heard that the Department of Education fights tooth & nail to take whatever they can from defaulted borrowers who obviously are in abject poverty with no hope of ever paying for their unusable education. I’ve heard of only ONE cancellation due to hardship/inability to benefit — it was an extreme case, and the Education Department refused to give up on it until the judge finally discharged it.
Can anyone cite cases of ANY other defaulted student loans being cancelled due to hardship or inability to benefit? Or is the application process completely bogus?
From what I have seen the application process is completely bogus.
I *think* the reason for the application is to bury you in paperwork, which in many cases they “loose”, requiring you to go through the whole process, yet again. Then once you have done it again, the two better match EXACTLY, or they are going to come after you harder.
I have a buddy who is a paraplegic due to a car accident, he is NEVER going to work, we did the forms twice, and they still send him a bill once a month, and call every two weeks. Maybe sometime in the future his parents are going to die and they will be right there, with their hands out.
