student loan Tag

19 Sep Student Loan Debt A National Bankruptcy Disaster

  [caption id="attachment_30546" align="alignleft" width="150"] Image from Dreamstime[/caption] Discharge of student loans in bankruptcy is an uphill battle according to a New York Times article. News papers these days abound with descriptions of truly desperate families saddled with massive student debt. The story of Ohio student loan debtor Doug Wallace, age 31, unemployed and legally blind is hardly unusual. In fact, it is so commonplace that bankruptcy lawyers hardly pay attention to such cases and their compelling facts. While bankruptcy discharge of student loan debt is theoretically possible, and does occur in a few cases, it is a difficult proposition at best. A debtor seeking relief from student loan debt must convince the court their financial situation is not only hopeless; they must prove it will not likely change for the better in the future. Without dramatic facts, discharge of student loan debt is denied in most bankruptcy courts.
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12 Feb Trillion Dollar Student Loan Industry Exempt From Bankruptcy

Photo Credit to DreamstimeIn 2010, the annual volume of new student loans reached 100 billion dollars. There is now more than a trillion dollars in student loan debt on the books and this type of debt is growing rapidly. A new economic crisis is about to emerge. Student loan debt cannot be discharged in bankruptcy except under the most extreme of circumstances. It is not only government-sponsored or guaranteed student loans that are exempt from bankruptcy discharge. Bank loans made to students, and relatives or friends who guarantee those loans, are facing discharge problems when the debt carries that "magic" designation as an "educational loan."
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