A common myth has it that student loans are not forgivable under any circumstance, including bankruptcy. But the truth is, though rare, some student loans are forgiven through the bankruptcy process.

Prior to 1976, a person could discharge her student loans in bankruptcy without any problem. But as the total amount of student loan debt grew, the US Congress changed the laws to make that process more difficult. In 1998, the law was changed to say that a loan would only be discharged if repaying the loan created an “undue hardship”, which the law did not bother to define.

Since then, the law has been put to the test many times over. Robert Farrington, reporting for Forbes, has put together a test you can use to determine whether or not your student loans may be forgiven in bankruptcy. You can read more here.

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