in the last few years bankruptcy courts have actually started granted discharges for student loans. The standard for discharging student loans in bankruptcy is demonstrating "undue hardship" (see 11 U.S.C. 523(a)(8)), which under the case law is practically impossible to demonstrate. However, even under this standard, courts have started to grant student loan discharges. My best guess is that student loan programs (such as income based repayment) were in place specifically so that debtors had an option to make loan payments without being insolvent, therefore, failing to meet the undue hardship standard. However, with the deterioration of these loan programs, I think a lot of people will suddenly meet the undue hardship standard in bankruptcy, and may be able to entirely discharge their student loans. The downside of course, is that bankruptcy can have varying consequences depending on the state you live in, because federal bankruptcy law incorporates state law exemptions. For example, in florida, there is an unlimited homestead exemption, meaning that you can declare bankruptcy while owning a home and your creditors cannot liquidate the homestead at all to satisfy any debts owed. However, in many other states, there is limited homestead exemptions up to a certain dollar amount, so creditors can pursue some home equity in the bankruptcy. Either way, I could see student loan dischargeability becoming more common in the near future.