Expert: Mark J. Markus- California Bankruptcy Attorney - 6/21/2007

Question
I attended the Philadelphia Art Institute from 1991-1994. The cost was approximately $15,000. I have been employed since then, but not gainfully. When I received my degree, I searched for work in audio/video engineering. Most of the employers did not look highly on this degree or institution. I have since found work outside of my degree. I got my CDL about two years ago, and am now driving a truck. I have not made much money in the 14 years since I graduated and have paid what I can on my student loan. I recently received a letter from Sallie Mae stating my 15,000 loan is up to 52,000 and want me to pay close to $600/month. There is no way I can afford that, short of winning the lottery. What are my options?

Answer
Student loans are not dischargeable in bankruptcy unless you can prove "undue hardship" after a trial.  To see what is required for this, see http://www.bklaw.com/chapter7/student_loans.html

You should first try consolidating the loans and trying to do an income contingent repayment plan with the Direct Loan Servicing Center.  Call them for details at 1-800-848-0979.