Doug Wallace Jr. graduated from Eastern Kentucky University several years ago with $89,000 in student loan debt, but diabetes left him legally blind within a couple of years, and he applied for bankruptcy protection. After six years, he still did not have a decision.
In 1976, politicians, tired of doctors and attorneys graduating and filling bankruptcy, tried to make it impossible.
In 2008, a 32-year-old, Mercedes-driving federal public defender with degrees from Yale and Georgetown with nearly $114,000 in total household income, but $172,000 in student loan debt filed for bankruptcy.
Applying to discharge student loans requires a completely different process than ordinary bankruptcy, requiring an attorney.
They cite some people who studied cases and up to 40% of applicants got at least part of their student loans discharged and those who had attorneys did not have better success.
"Radoje Vujovic, a North Carolina consumer bankruptcy lawyer, for instance, had more than $280,000 in student loan debt and just $23,000 in annual income."
They complain about making judges speculate about the possibility of applicants eventually being able to pay it off.
Last Chance to Shed School Loans - Proving All Is Hopeless - NYTimes.com