student loan Tag

27 Jan Can I Deduct My Student Loan Payment As An Expense On My Bankruptcy Petition?

You may be able todeduct your student loan payment as an expense on your bankruptcy petition if you file Chapter 7, but usually cannotif you file Chapter 13. As you probably know,student loan debts are usually not dischargeable in bankruptcy. That means that if you file...

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21 Dec The Worst Debt You Can Have: Student Loans (Part One)

I'll bet that if you asked the average person what debt is the worst kind of debt, he'd say taxes. But owing student loans is, ironically, far worse than owing Uncle Sam. During my next few posts, I'll examine exactly what a student loan is, a bit of history of how the Bankruptcy Code has dealt with student loans over the last few decades, current bankruptcy rules regarding discharging student loans, and various approaches to dealing with student loans. Why should you care? Because student loans are one type of debt that is non-dischargeable in bankruptcywell, almost non-dischargeable. To begin, let's look at what a student loan is and what it's not. Section 523(a)(8) contains the so-called student loan exception to discharge. The exception applies to:
  • an educational benefit, overpayment or loan, made, insured or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or a nonprofit institution; or
  • for an obligation to repay funds received as an educational benefit, scholarship or stipend; or
  • any other education loan that is a qualified education loan, as defined in section 221(d)(1) of the federal tax code.
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01 Oct Supreme Court to Decide Three Bankruptcy Cases

The US Supreme Court plans to hear oral argument on several important bankruptcy cases in its 2009/10 term. One case, Milavetz Gallop v. U. S., deals with the relationship between bankruptcy lawyers and their clients. The case of U. S. Student Aid Funds v. Espinosa will determine what type of procedural steps must be taken to discharge a student loan. Finally, Schwab v. Reilly, a case in which the method of claiming an exemption was disputed will be heard. The Milavetz Gallop case deals with a requirement in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 that bankruptcy lawyers call themselves Debt Relief Agencies. The Act further required other mandated disclosures and restricted the advice that a bankruptcy lawyer can give to a client. All three of these issues are before the court for decision. A similar case, Connecticut Bar Association v. U. S., included Eugene S Melchionne, President of Bankruptcy Law Network, as one of its plaintiffs. A decision on Milavetz Gallop will determine the result in that case as well. The free speech issue has been addressed by other authors in this weblawg.
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24 Apr Debt Cures: Does Kevin Trudeau Make Money or Sense? Part 8: Student Loan Issues

Part 8 of my review of Kevin Trudeau's book, Debt Cures They Don't Want You to Know examines Chapter 13: Class is Now In Session. The purpose of the review is to examine whether Trudeau, who has had extensive involvement with credit card fraud and the Federal Trade Commission for some of his previous books, makes any sense in this latest self-help promotion or is he making money selling empty promises. Chapter 13 discusses the issues with student loans and the possible options after graduation and the collector comes a-calling. Trudeau explains the difference between federally guaranteed student loans and private student loans. The basic student loan is the Stafford loan, consisting of either a loan from the federal government (Federal Direct Student Loan Program)(FDSLP) or private lenders' loans guaranteed by the federal government (Federal Family Education Loan Program)(FFELP). The interest rate on these types of loans are fixed but may be discounted for electronic payments. These loans go into repayment six months after graduation.
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30 Jun Is Administrative Discharge of Student Loans Available in Bankruptcy?

Administrative standards for discharge of a trade schoolstudentloanare not available in a bankruptcy case according to the United States Bankruptcy Court for the Northern District of Ohio in the case of Gregory v. U.S. Department of Education (April 1, 2008), which ruled that the requirement of undue hardship must always apply to the discharge of student loans in bankruptcy. The court then used the potential availability of a closed-school administrative discharge under 34 C.F.R. 682.402(d) as one reason for denying a hardship discharge for which the debtor qualified under two of the three prongs of the Brunner test . The record of this case suggests thatthe debtorrepeatedly informed the Department of Education and its collection agents that the school had closed before she completed the program, but was never provided with information on how to apply for an administrative discharge. The opinion is also silent as to whether such information was provided to the debtor or her attorney when the Department of Education filed its proof of claim in the Bankruptcy case.
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