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There is some student debt that is dischargeable in bankruptcy
Student expenses like tuition and books charged on a credit card aren’t treated any differently than other kinds of expenses charged on a credit card . If you are at a place where you are considering filing bankruptcy for your student loans. You will be well served to go into your records and see what exactly you charged on a credit card while you were in school . . Often the idea, of borrowing on a credit card to finance educational expenses is a “hindsight is 20/20” thing. When the student borrower on a student loan has completed his / her education, finds himself in a bad financial bind and learns he could have made a different choice from the outset.
But the uniformity of treatment of is both good news and bad news. As with any other debt incurred on a credit card, if it looks like the borrower never intended to pay it in the first place, the lender can fight back even in a bankruptcy. Any creditor can object to its claim to be discharged in bankruptcy. They do this by filing an “adversary proceeding.” This doesn’t happen often, but it is essentially a lawsuit filed within the bankruptcy proceeding itself.
You get the idea. It’s really common sense. If it looks like the borrower has acted reasonably in taking on debt, s/he will not likely face closer scrutiny if s/he later files bankruptcy.
Should you charge your student loans on a credit card ?
These days, credit card interest rates are at historic lows. Money is practically free to the banks and they’re passing some of that happiness along to borrowers. It may make sense to many a borrower to finance his/her education on a credit card simply because the rate is so hard to match even under student loan programs.
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