There are various ways to get loan forgiveness for these loans, for reasons as you suggest, before the bankruptcy question. But pity the fool who paid off their loan and is now bankrupt.
> But pity the fool who paid off their loan and is now bankrupt.
Sadly that's becoming more and more common a trend in this country. It's the same as all the poor chaps who kept trying to pay their underwater mortgages while they're neighbors squatted for free.