Texas residents may have heard that student loan debts cannot be discharged. However, there are some unusual circumstances in which this may be possible. For example, if a school closes while a student is enrolled or within 120 days of the student leaving the school, the student loans may be discharged. Another unusual situation is if the college is found to have violated state laws. It is necessary to prove that the violation was related to the student’s education or loans such as taking out loans based on deceptive information.
A discharge for unauthorized payment or false certification may apply in several situations. If there was identity theft or the school signed a student’s name without permission, the debts may be discharged. This is also true if a person did not meet the criteria for receiving a student loan but the school granted it anyway or if someone cannot work in the field trained for at the school because of a criminal record, a physical condition or for another reason. If a school failed to pay a refund to a lender or the government, there could be a partial discharge.
A person who suffers permanent and total disability may have student loans discharged. Finally, in extreme hardship circumstances, student loans could be discharged in bankruptcy.
Even if a person is unable to discharge student loan debt, it might still be advisable to file. Freeing up funds by having these debts discharged could result in the person being in a better position to pay off student loans. An attorney can be of assistance in determining which chapter a client qualifies for.