If you’re drowning in student loan payments, you’re not alone. Many borrowers are surprised to learn that even if student loans are rarely discharged through bankruptcy, bankruptcy credit counseling can still offer valuable tools and strategies. It can be a turning point in your financial situation.

How Bankruptcy Credit Counseling Supports Student Loan Borrowers

Though student loans are usually considered non-dischargeable—or in other words, not easily eliminated—the counseling process still offers guidance that can make your situation more manageable. Here’s how:

Clarifies Where You Stand Financially

One of the biggest benefits of bankruptcy credit counseling is the clear overview it provides. Many people with student debt aren’t sure where their money is going or how much they actually owe.

In counseling, you’ll walk through your income, expenses, debts, and assets. This exercise helps you understand how student loans fit into your total financial picture. You may find that your budget needs a reset or that other debts are taking up more space than you realized. Getting clarity is the first step toward change.

Helps You Explore Repayment and Deferment Options

Credit counselors are trained to help people understand repayment strategies for different types of debt, including student loans. If your loans are federal, you may be eligible for options like income-driven repayment plans, deferment, or even temporary forbearance.

Many borrowers don’t know these options exist or how to apply. A counselor can walk you through what’s available and help you make a plan that aligns with your income and goals. While the session isn’t a long-term coaching program, it can be a catalyst for action.

Identifies If Bankruptcy Could Still Help in Indirect Ways

Even if your student loans won’t be discharged, bankruptcy can reduce pressure from other debts like credit cards, personal loans, or medical bills. That relief can free up income to focus more on student loan payments.

In rare cases, student loans may be discharged in bankruptcy if they create an “undue hardship,” though this requires a separate legal process and is difficult to prove.

Bankruptcy credit counseling helps you assess if this kind of reorganization makes sense for your overall finances. In some cases, it’s just enough to create breathing room.

Reduces the Overwhelm and Builds Confidence

Facing student loan debt feels isolating. Many people assume there’s no way out, but counseling changes that narrative. Having someone walk through your options, even if they aren’t all ideal, can lift a huge emotional weight.

Bankruptcy credit counseling is designed to educate and not judge. The goal is to empower you with knowledge and help you see that action is possible. Even if full resolution takes time, the counseling experience offers a renewed sense of control.

Prepares You for Life After Bankruptcy

If you do go forward with filing, student loan debt doesn’t disappear, but your overall financial situation can improve. Less debt means more cash to allocate toward student loans. And with a better understanding of how to budget and prioritize, you’re in a stronger position to stay on track.

Bankruptcy credit counseling also teaches foundational skills, including tracking spending, setting savings goals, and avoiding future debt traps. These lessons are just as valuable as legal outcomes when it comes to long-term financial wellness.

When to Consider Bankruptcy Counseling for Student Loans

If your student loan payments are forcing you to fall behind on other bills or rely on credit cards just to get by, it may be time to seek help. Likewise, counseling is a good place to start if you’re considering bankruptcy and aren’t sure how student loans will be handled.

Even if you’re not filing right now, the insights from bankruptcy credit counseling can help you feel more prepared if that day ever comes. And if you’re looking for clarity, it’s a productive, low-pressure first step.

Take Back Control with Bankruptcy Credit Counseling!

If you’re dealing with student loan debt and wondering if bankruptcy is part of the solution, Debthelper, an IRS-approved 501c3 Non-Profit Florida Corporation, can help.

We offer bankruptcy credit counseling and debt management programs tailored to your needs. Let’s talk about your options—no pressure, no judgment. Just real help when you need it most. Contact us today.