Imagine John Smith, soon to be John Smith, Esquire. He has completed his last round of finals and is anxiously awaiting graduation from law school. In the time between finals and graduation, when many third-year law students are taking a brief mental vacation before bar exam preparation gets into full swing, John thinks he has found the ultimate loophole. John files a bankruptcy petition, which shows his non-existent current income, minimal assets, and education loans totaling over $100,000.

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... en John's apparent insolvency, the court discharges his student loans so that John can have a fresh start and attempt to get back on his feet. John is pleased because he has a great job lined up for after graduation, and getting rid of this debt will make his life better. Luckily for the taxpayers who would then be responsible for John's federally guaranteed student loans, Congress essentially eliminated such a possibility decades ago, and college students across the country can rest easy knowing that their loans will be fully intact upon graduation.