Rita borrows $20,000 from the U.S. Department of Education to help pay for her education at State University. She signs a note payable to DOE for the amount of the loan plus interest. The loan may be discharged if

Question

Rita borrows $20,000 from the U.S. Department of Education to help pay for her education at State University. She signs a note payable to DOE for the amount of the loan plus interest. The loan may be discharged if​

Quizplus · Accepted Answer

Option B is the best choice because it is the most likely circumstance for loan discharge. This is because discharging a student loan in bankruptcy requires the borrower to demonstrate undue hardship, which is a difficult standard to meet. Option A is not the best choice since it only applies if Rita does not graduate within six years. Option C is not the best choice because it is too broad, as not all circumstances would warrant loan discharge.

Rita Borrows $20,000 from the U