Hello, I practice bankruptcy law.

Sorry in advance since I'm on mobile. I can give you some perspective on the discharge in the bankruptcy process. But remember, my response is not a moral analysis of whether your boyfriend should pay his loans like most responses when the question of bankruptcy comes up.

When a petitioner files for bankruptcy, there are certain debts that are automatically discharge at the end of the bankruptcy - your unsecured debts, i.e. Credit card debts, loans without security, etc. The creditors will have a period of time to challenge the automatic discharge of these loans based on a list of things that will make your debt non-dischargeable - I.e. Your boyfriend went out and opened 10 credit cards prior to the filing of his bankruptcy petition.

However, student loans are not the automatic discharge category. Usually bankruptcy can be inexpensive, and a debtor can file all the necessary documents themselves. However, to challenge the nondischargeability status of a student loan, the debtor is required to file an adversary proceeding within the bankruptcy case. Think of an adversary proceeding is filing a lawsuit against the creditor. This a complaint, evidence, and possible a bench trial will be held - which translate to more money.

The purpose of the lawsuit is to determine whether the student loans impose an "undue hardship" on the debtor. Depending on your jurisdiction, there are two tests to determine undue hardship (it is not total disability like someone suggested in this thread). A majority of circuits follow the stringent, all three factors must be met, three-prong a runner test: (1) you cannot maintain a minimum standard of living if forced to pay the student loans; (2) additionsl circumstances indicate that your situation will persist; (3) you made a good faith effort to repay the loan. The first prong looks at income and expense, and see if you're insolvent or whether your income is below the poverty line. The second test is what will hurt you the most, since your boyfriend is relatively young, and most case law comes out against those who are younger in their careers. This prong essentially have the judge predicts whether the debtor will continue to live in poverty for the rest of his working years; which is much easier when someone is 60-70 years old. The third prong is the repayment. This is also income specific, and creditors will often exam your income and expenses to say: debtor had money at this time, but failed to pay. Therefore there was no good faith.

Before embarking on this very expensive decision, think of the standard I listed above and do a few Google search. What you should Definitely NOT do is take out your 401k to pay for this - cause essentially it is a gamble with an unlikely chance that the lawsuit will be ruled in your favor. And any ruling on your favor, and you can guarantee that the credit company will appeal, since the case law and legal standard are drafted in their favor.

Keep your 401k, and meet with a bankruptcy attorney that specialize in student loans. Use a free consultation, and if your jurisdiction has the Bruner test, ask the attorney if your boyfriend meets the standard. Based on his age, and without any other information, I don't think his debt will be dischargesble.