Lets say you have to decide on defaulting on your student loans or defaulting on your mortgage. In many ways, the mortgage may be the good choice:
1. Student loans are generally not dischargeable in bankruptcy;
2. After foreclosure, the lender (in some states – check with you attorney) may not be able to go after you for any remaining balance.
While I do not condone or otherwise recommend going to foreclosure, I do not the “risk” student loan borrowers have. For people like doctors, they may have hundreds of thousands of student loan debt. Faced with a choice between paying down the mortgage or paying down the student loan balance, the student loans are a no brainer.