Planning for College


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Planning for College

Students preparing to leave for college and their parents are faced with a number of costs: tuition, fees, books, meal plans.  It is important to plan for those costs, and hopefully be able to reduce the amount of money you and your college-bound grad have to borrow. 

Do not borrow money with the thought of “I’ll borrow whatever I need now and figure out how to repay it later.”  This is a mistake.  Determine now, before you borrow, what you will have to re-pay each month when you get out of school and don’t borrow more than you can re-pay each month, assuming that you will make an average salary in your chosen field.  A good rule of thumb is that any kind of monthly repayment in excess of $300 per month will be very difficult to re-pay for the average borrower whose salary is $30,000 or less, unless that person is willing to make some very significant compromises in terms of lifestyle and living arrangements.


Student Loan Relief

Bankruptcy rarely helps with student loans.  Student loans are nondischargeable except in very limited circumstances, such as “undue hardship.”  Undue hardship is very narrowly defined and is rarely granted.  The possible discharge of private student loans in bankruptcy is difficult, and the burden of proof of financial hardship is on the borrower and the bar is set very high.  This test is often not met by the plaintiff, so don’t assume that it will be any assistance. It usually isn’t.


 Dana A. Ehrlich

Dana A. Ehrlich can help you evaluate those options.   He has lived in the ConchoValley and San Angelo, Tom Green County for many years.  His practice is primarily consumer bankruptcy law and he is a board certified bankruptcy specialist for Chapter 7 and Chapter 13.  He may be reached at 325-655-5351 or at dana@wcc.net


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