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Colorado Couple Sees $200,000 in Student Loans Canceled

student debt sign in a pile of money

With student loan debt soaring over $1.64 trillion, that leaves over 45 million borrowers paying back what are sometimes untenable monthly sums to both federal and private loan servicers. In most cases, individuals in the US who may be going through difficult financial times are told that they cannot see student loans discharged in filing for bankruptcy unless they can show clear evidence of hardship, and in most cases that must be extreme to get the court’s attention.

Recently, however, a Colorado couple made major headlines as they were triumphant in seeing $200,000 discharged in bankruptcy. There is hope now that this precedent will make it easier for others hoping to see similar success. While Laura Paige McDaniel asked that her loan from Navient be discharged, she received the expected response from Navient—that it could not, and that bankruptcy code reflects that; however, what they were not counting on in McDaniel vs. Navient Solutions, LLC was that this was not just another case of claiming hardship, but rather something different: McDaniel had used specific student loan funds to pay for living expenses. The Court considered these funds an “education benefit,” and one that did not show “obligation to repay funds” as such.

If your student loan is in delinquency, it is recommended that you do everything possible to avoid a default. To claim hardship, you must be able to show that you have extenuating circumstances that will be long-term—and you must have been paying on the loan in good faith already. In speaking with an experienced student loan attorney from Fitzgerald & Campbell, APLC you can examine your options for private student loans. You may be able to refinance your loan or negotiate with the servicer in some cases. Reaching out for a solution could be critical to your future financial health as a collections lawsuit from a private loan servicer could result in nasty repercussions like wage garnishments or levies on personal property or bank accounts.

Have you experienced problems with your loan service provider or student loan program, or are you in danger of defaulting on your student loan?

Speak with an attorney from Fitzgerald & Campbell, APLC as soon as possible to examine your options. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy, and other debt management processes. We are here to help! Click here to schedule a free 30-minute consultation, call us at (844) 431-3851, or email us at

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