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BANKRUPTCY AND STUDENT LOANS
Back in the sixties and seventies, and even into the eighties, it was fairly common practice to graduate from college and immediately file bankruptcy. Since most new graduates had little other debt, and they weren’t thinking in terms of purchasing a home yet, it was an effective way to wipe their financial slate clean as they started out in their careers. Of course, it was a bit hard on the taxpayers who loaned them the money to get their educations … That’s you and me, folks. We loaned and are lending that money. It’s our tax dollars. We need to be paid back so we can lend it to another student.
Because of the popularity of bankruptcy instead of debt management, Congress decided to make it more difficult to discharge student loans in this manner. It is still possible, but you have to prove undue hardship over a period of years. You have to have a good lawyer and a sympathetic judge. You all read the news about the man whose bankruptcy was denied and his social security disability pension is being garnished. It’s not an easy process, and the government hires really good lawyers to fight the case. They usually win.
Bankruptcy and Student Loans:
Student Loan Topics:
Master Promissory Note, Student Loan Deferment, Student Loan Forbearance, Student Loan Consolidation, Student Loan Discharge, Student Loan Grace Period, Subsidized
Student Loans, Unsubsidized Student Loans, Stafford Student
Loans, Perkins Student Loans, Direct Student Loans, PLUS
Student Loans, William G. Ford Student Loans, Student
Loan Delinquency, Student Loan Default, Student Loan Payment
Options, Student Loan Case Studies, Student Loan Management,Additional Reading Relating To Student Loans, How Do I Get A
Student Loan, How Do I Confirm the Status of my Student Loans, Why
Do I Owe Twice As Much As I Borrowed On My Student Loans, Pending
Changes Affecting Student Loans, Bankruptcy and Student Loans, Student Loans And Your Credit Report, Student Loans, Gifts.
