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Question for the Money Doctors

Question submitted on Jun 2, 2014.


My daughter is 32 years of age.She is totally illiterate as far as money goes.
She owes $80,000 in student loans.
She is a social worker and makes $35,000. With living expenses she can't even pay the interest on the loan. I believe she will never get free of this debt at the present situation. Certainly this situations was not the intention of the student loan program.
I can think of only 2 solutions. Loan forgiveness, if she can qualify or bankruptcy?
Can she qualify for bankruptcy under the current laws?


Student loans cannot be discharged through bankruptcy.

There are a lot of great articles on our website - 360 Degrees of Financial Literacy. Please ask your daughter to invest 1 hour a day on our website and keep learning.

Please ask her to go to This is the website by the US Department of Education about how to manage your student loans.

She might be able to refinance her student loans and get a better interest rate. The President just announced some more changes to the federal student loans. If she has a federal student loan, her payments may be limited based upon her income. After 20 years, the remaining balance will be forgiven. However, any forgiven balances are considered to be taxable income so she will need to pay taxes on it. She should check to see if she is eligible for this program.

She should see if she can qualify for a Public Service Loan Forgiveness or Teacher Loan Forgiveness. Follow the links on the website.

She incurred the debt, she should pay them off.

If she needs help with money management, she should contact the local Consumer Credit Counseling and there are many seminars about money management.

For additional information visit