Student Loan Bubble Update

I long for the day when the Student Loan Bubble Update is good news. Let’s lead with the surprise: According to the survey of 500 college students by LendEDU, a private firm that connects students and their families with student loans and loan refinancing, almost half of those responded that they believe they would be… Continue Reading

Bankruptcy Discharge Of Student Loans

Folks keep telling me that Bankruptcy Discharge Of Student Loans does not/can not happen. Even a lawyer friend I was speaking to last week. “What?  You can get rid of student loans in bankruptcy?” Uh, yes.  Not automatically.  Not easily.  But, yes, you can. Chapter 7 Discharge of Student Loans When a bankruptcy case is… Continue Reading

Navient Again – Student Loan Servicers

Sallie Mae acquired such a bad reputation that it changed its name to Navient. But the service has not improved, as Navient is at the center of the Student Loan Servicers Mess. What Do Student Loan Servicers Do? Here is the Department of Education definition of Student Loan Servicer: A l(student) oan servicer is a company… Continue Reading

Navient & Student Loan News

Navient, formerly Sallie Mae, still on a  losing streak. Navient Shahien Nasiripour writes frequently for Bloomberg on student loan issues. So there is lots of material. Navient Corp. lost out on a lucrative government contract to collect on defaulted federal student loans late last week, disappointing previously optimistic investors. The company has collected on such debt for… Continue Reading

Student Loans And Politics

Bernie Sanders wanted free college for everyone. Well, somebody would be paying, just, not the students. The Obama administration does not like for profit colleges, among other for-profit entities it dislikes. New rules are supposed to make it easier to get rid of student loans incurred to attend fraudulent colleges/programs. President elect Trump, a big… Continue Reading

What Is Undue Hardship?

Most courts apply the Brunner test to determine whether student loan debts are dischargeable in bankruptcy. The bankruptcy code provides that student loan debt is NOT dischargeable in bankruptcy unless the debtor can prove it would be an undue hardship for the debtor to have to repay the student loan debt. So, it would be an undue… Continue Reading