Your friend is correct. Changes to bankruptcy laws made in 2005 have made even private loans undischargeable in bankruptcy.

The VERY rare exception is if the bankruptcy court were to find that paying off the loans would cause “undue hardship”. This is a legal standard that is near impossible to satisfy. You would need to demonstrate, among other things, that your current inability to pay is likely to continue for the foreseeable future. We’re talking things like full and permanent disability here.

(The standard IS sometimes satisfied, and I’d be glad to furnish references, so take the posters who will tell you that this NEVER happens with a grain of salt – however, just make sure that you understand that a claim that basically amounts to “I was foolish and I borrowed too much and I can’t find a job and there’s no way I’m ever going to be able to repay these loans and buy a house and drive a decent car and live a normal life” is not going to succeed in bankruptcy court – ever.)

So, basically, for all extents and purposes the answer is NO, you cannot discharge student loan debt, government or private, in bankruptcy proceedings. Sorry.