I believe, although I might be wrong, that student loans are handled separately. If you want to get the debt reduced, you have to go through the student loan agency, not the bankruptcy court. The fact that student loan debt can't be erased by bankruptcy is often cited as one of the reasons that loaning agencies are disinclined to work with struggling debtors. OTOH, you can go through bankruptcy in the US without losing everything. I think that's very true. I thought that was especially true in the case of the first guy in the link, who got an MBA and another master's and then applied for jobs only in New York. Just on principle, I would expect someone with an MBA to make better business decisions. Personal experience always varies, but with all due respect, if you didn't get your master's in the US in this economy, I don't think your experience is particularly applicable to the situations faced by the people in the link. I think the same is true of undergrad education. I never know whether to laugh or scream when people here post things like "When I got my degree (30 years ago), I paid my own way by working summers and it was good for me and what's wrong with kids today who move back in with your parents because you can't stand to give up your big screen TV and free laundry?" College costs in the US have increased 1,120% in the last 30 years and it is much harder to get scholarships and aid than it used to be. That's a lot of what's wrong with kids today.