A Student Loan debtor who received a bankruptcy discharge on their student loans won the battle to keep his student loan bankruptcy discharge. The Supreme Court ruled that although an "undue hardship" hearing should have been held but was not held, the debtor should not be punished by taking away the bankruptcy discharge of his [...]
Facts About Bankruptcy and Student Loans Student Loans are Very Difficult to Discharge in Bankruptcy However, they can be discharged in either Chapter 13 or Chapter 7 bankruptcy under certain circumstances. There are two main reasons for discharging student loans in bankruptcy: If the debtor dies if repaying the debt would cause an undue hardship [...]
Many Americans drowning in student loan debt and many of those considering college listened to President Obama with much anticipation as he tackled the issue of crippling debt burdening most Americans who pursue a college education. President Obama announced that he was working with Congress to create a national program which would ease the burden [...]
As we mentioned in Part I, most debtors find it difficult to discharge their student loans in bankruptcy. However, there are several other ways to discharge your student loans before, after or even during bankruptcy. As we mentioned in Part I of " Are There Other Ways To Discharge My Student Loans Besides Bankruptcy ?", [...]
As we have previously mentioned, discharging a student loan in bankruptcy can be difficult to say the least. In order to receive a bankruptcy discharge for your student loans, you must be able to prove that repaying the loan would cause an undue hardship. Unfortunately, "undue hardship" has not been specifically defined. This lack of [...]
Over 21 percent of student loan borrowers who attended a for-profit college default on their student loans within 3 years, according to a report released by the U.S. Department of Education. For-profit colleges claim that the high numbers of low-income students attending their institutions are inflating their default rates. So does being a low-income student [...]
Last year we highlighted a Chapter 13 bankruptcy case where student loan debt was partially discharged. The bankruptcy discharge was challenged by the creditor and has made its way to the Supreme Court. Here is an overview of the decision made by lower courts last year: In the case of (Espinosa v. United Student Aid [...]
According to an article in the Dallas Morning News, Parents who invested in Texas' prepaid tuition plan to pay for their child's education and avoid student loans may be out of luck after November 30, 2009. On November 30th new rules governing the program take effect that will change the way the Texas Guaranteed Tuition [...]
According to an article in Forbes , the U.S. Supreme Court will listen to oral arguments for and against the discharge of student loans in bankruptcy. The debate will center around the Chapter 13 bankruptcy case of Francisco Espinosa who was able to obtain a partial discharge of his student loans in bankruptcy. That discharge [...]
Private student loans have been in the headlines lately with government efforts to restrict them and make them eligible for bankruptcy discharge. But what isn't being talked about is the fact that private loans are often the last resort of desperate students who can't find money anywhere else for their education. Normally, students looking for [...]