student loan servicer under the new proposal
by Education Secretary Betsy Devos. Article in Forbes:
In May, DeVos announced that the Education Department would select one servicer to service all federal student loans, which represented a change from the current multiple-servicer system.
DeVos outlined four primary reasons:
- Ensure superior customer service
- Maintain borrower protections
- Protect taxpayers
- Increase oversight
Student Loan Debt Problem Still Growing
From KBMZ webiste story:
According to figure compiled by Forbes, more than 44,000,000 Americans are working to pay off some kind of student loan, owing more than $1.3 trillion in student loan debt, which is $620 billion more than the total U.S. credit card debt. The average 2016 graduate has $37,172 in student loan debt.
The existing resolutions, the income based repayment plans and so on, are NOT fixing the student loan debt problem, and it will not go away.
Win for Student Loan Discharge
Congrats to Waterman & Mayer, a Philadelphia law firm with a win in bankruptcy court on a suit to discharge student loan debt.
Chief Judge Eric Frank discharged all the federal student loans ($26,000) of Kristin Price, a single mother of three children.
It may sound unlikely, but Price, a healthy 29-year-old who works 20 hours a week in the field of work in which she obtained her degree, was able to discharge her student loans. It is usually assumed that student loans can be paid if the person is working in his or her field of study, but, in this case, with three children and expensive child care, the court ruled in her favor applying the much criticized, Brunner Test, to conclude that Price could not pay back her loan without undue hardship within the period of her original repayment plan.
Pressure To Lower Bar Exam Standards
Two bad guys?
From my favorite blog, Instapundit:
HIGHER EDUCATION BUBBLE UPDATE, LEGAL EDUCATION EDITION: California Considers Lowering Passing Score On July Bar Exam. “I’d like to thank the deans of law schools around the state who provided invaluable input.”The tension is between two self-interested groups: Law deans who want a higher pass rate to help their applications and rankings, and the bar which wants a lower pass rate to ensure that there’s not competition that might — shudder! — drive down fees.