For decades, college tuition has been rising at a rate that far outpaces inflation. Many parents who set up college funds before their children were born, making regular contributions to them in the expectation that tuition would increase at a steady rate, are finding the amounts they’ve saved to be woefully inadequate to pay for 4 years of college, let alone additional years of graduate school.

Of course, in today’s knowledge-based economy, most well-paying jobs require at least a college degree, if not some form of post-graduate degree. This creates quite a conundrum for new college students. Typically, new college students fill in the financial gap by taking out student loans. Student loans are like any other loan in most respects: the lender gives the student some money, with which the student pays for college. After graduation, the student pays the lender back, in installments, with interest. In the case of student loans in the last few years, the lender is, for the most part, the federal government.

Over the last few decades, the percentage of high school graduates who immediately enroll in college has been steadily increasing. This means that ever-increasing numbers of recent college graduates are entering the job market. With the country slowly recovering from a near-collapse of its economy, and unemployment rates stubbornly hovering at just under 10%, many new graduates are in a very difficult situation: payments on their student loans are suddenly due, and the decent-paying jobs that they hoped would greet them upon entering the workforce are nowhere to be found. Obviously, this puts many recent graduates in a very difficult situation.

Most student loans, even if they came from a private institution, are guaranteed by the federal government (meaning that they’ll pay the lender if the borrower defaults). Because of this, the government has made it very, very difficult to legally get out of paying one’s student loan debts. This policy was originally enacted to minimize the risk on lenders of issuing student loans, thereby making student loans relatively easy to get, for anyone who needs them.

However, with credit being so easy to obtain, the government has an interest in ensuring that defaults are as rare as possible.

One of the most important of these measures is a law that says student loan debts cannot be discharged in bankruptcy. Bankruptcy, for those unfamiliar, is a legal arrangement that allows a person to relieve their obligation to pay back some of their debts, when it can be shown that it would be very difficult or impossible to pay them.

Some debts, however, cannot be eliminated in bankruptcy. Student loans are among them. There are a few exceptions, however. If it can be shown that repaying one’s student loan debts would be an “undue hardship,” they can be discharged. However, this is a very difficult standard to meet. Generally, you have to show that you will never, at any point in your life, be able to earn enough money to repay your student loans.

Bankruptcy courts are extremely reluctant to find in favor of debtors in student loan cases, mostly because the debts are usually so large, and the law so strict in terms of the standard that must be met.

In addition to making it difficult for debtors to discharge their student loan debts in bankruptcy, there are some pretty severe consequences for defaulting on one’s student loans.

For example, if you fail to pay your loans for several payment periods (typically monthly) in a row, you may lose your right to repay your loans in periodic installments. This means your entire balance, no matter how large it is, will become due and payable immediately. Obviously, this can seriously harm your finances and credit rating.

Of course, if this happens, chances are that you won’t be able to pay your full balance, or anything close to it, immediately. Your lenders can garnish you wages in order to collect. This means they can go to your employer, and collect a certain percentage of your paycheck. Also, the government can withhold you tax refunds, and put the proceeds towards your debts.

You should ultimately remember that when you take out a student loan, you will have to start paying it back sooner or later. This is true regardless of whether or not you complete your degree, and whether or not you get a job in your field of study after you graduate (or any job, for that matter).

If you are having trouble paying your student loans, you should contact your lender, to see if any alternative payment plans are available. If you are worried that you may default on your loans, you should speak with an attorney immediately.

John Richards is a writer for LegalMatch.com and the LegalMatch.com Law Blog. The above article is for general informational purposes only, and should not be construed in any way as legal advice relevant to your particular situation. The only person qualified to give you legal advice is an attorney licensed to practice in your jurisdiction, who has been apprised of all the relevant facts of your situation.