We’ve written before about how student loans, unlike other forms of debt, can’t be discharged in bankruptcy–which is why it’s so important to be careful about how much you borrow.
Bankruptcy law says that, without proving “undue hardship,” a borrower can’t discharge a loan made for an “educational benefit.”
Recently, however, bankruptcy courts have started ruling in favor of some student loan borrowers and have allowed them to discharge their debt, according to The Wall Street Journal.
President Obama’s recent signing of the bill to keep student loan interest rates low is a move in the right direction toward helping students afford college. But as we’ve discussed, it’s not enough. In the video below from Democracy Now, Rolling Stone editor Matt Taibbi discusses how the high price of U.S. college tuition is the real […]
Suze Orman completely nails it in this video about student debt. She discusses unfair laws preventing people from discharging student loans in bankruptcy, predatory lenders, and the lack of options for students who can’t afford their monthly payments. It’s definitely worth a watch. Many of these banks and institutions, they borrow at zero percent […]
With student loan debt at an all-time high and more students than ever falling behind on their payments, some people have called on the government to forgive all student loans as a way to help needy students.
Daniel Lin, a Professor of Economics at American University, argues that this would just be a temporary solution that wouldn’t help break the cycle of student debt. Instead of debt forgiveness, Professor Lin suggests making student loans like other types of loans: dischargeable in bankruptcy.