Originally Posted by
makersmarc
Bankruptcy exists to make a certain degree of risk taking acceptable. If bankruptcy were to be allowed for student loans, there would be no student loans because the default rate would be so high. Nobody would make loans to people that only had to endure 7 years of bad credit to wipe out hundreds of thousands of dollars of debt.
That situation can be overcame.
For example, let's say I have $20,000 is student loan debt. If I have 3 credit cards and take out cash advances of say $5000 on each of them, I could take that $15,000 and use it to pay down the non-dischargable student loan debt and default on the credit cards.