School loans eligible to be discharged in bankruptcy?

[brainhulk]

http://finance.yahoo.com/news/why-t...thers-do-the-same-205039313.html?noRedirect=1

In certain situations, you can have your federal student loan forgiven, canceled, or discharged ... If you file Chapter 7 or Chapter 13 bankruptcy, you may have your loan discharged in bankruptcy only if the bankruptcy court finds that repayment would impose undue hardship on you and your dependents. This must be decided in an adversary proceeding in bankruptcy court.

Interdasting...we may see more of this

 

[OverVolt]

Currently they are not. So a word to the wise would be to pay your loan so the interest doesn't balloon out of control and you end up holding a piece of cardboard on tumblr.

 

[Greenman]

The day the rules change and student loans can be discharged every liberal arts major in the country will be in that line.

 

[s0me0nesmind1]

http://finance.yahoo.com/news/why-t...thers-do-the-same-205039313.html?noRedirect=1



Interdasting...we may see more of this

I totally would take that with a grain of salt. Considering it is a FEDERAL loan, I'm not sure how or why a state court would do anything concerning it.

If you're depending on a court to get rid of your student loans (while you shoot your credit down the toilet), your gonna have a bad time.

 

[s0me0nesmind1]

The day the rules change and student loans can be discharged every liberal arts major in the country will be in that line.

Haahahaha some of them are gonna read this article and start right away is whats funny.

 

[PokerGuy]

That's nothing new. There are specific situations where the debt can be discharged, but it's not easy and not common.

I love this little gem:

And he questions why higher education isn't free.

And I question why everything isn't free! Don't the teachers work for free? Aren't buildings built for free? Why don't we all have unicorns???

What an entitled idiot.

 

[rudder]

"As difficult as it has been, I’ve never looked back," he writes. "The millions of young people today, who collectively owe over $1 trillion in loans, may want to consider my example."

His example.... start by attending an expensive, private school and load up on student loans because you cannot afford tuition and expenses. Then rather than take a job that could have allowed him to begin repaying his loans (which were unsecured)... he decided not to.

Great example.

 

[BarkingGhostar]

Pay your fucking debts.

Of course, publicly shaming those that try to skirt their responsibilities is a viable alternative.

 

[edro]

The day the rules change and student loans can be discharged every liberal arts major in the country will be in that line.

That is completely unfair.

There are HUNDREDS of liberal arts majors who are well employed.

 

[morkus64]

http://finance.yahoo.com/news/why-t...thers-do-the-same-205039313.html?noRedirect=1

Interdasting...we may see more of this

The trick to it is, with various IBR/IRCE/PAYE etc., I think it would be awfully difficult for a court to find that it would represent a significant hardship.

 

[CraKaJaX]

That is completely unfair.

There are HUNDREDS of liberal arts majors who are well employed.

I laughed. :thumbsup:

 

[highland145]

That's nothing new. There are specific situations where the debt can be discharged, but it's not easy and not common.

There was one this AM about a for profit scam college wher the govt is going to forgive the loans.

http://www.nytimes.com/2015/06/09/e...oans-of-corinthian-college-students.html?_r=0

 

[dr150]

That is completely unfair.

There are HUNDREDS of liberal arts majors who are well employed.

To be one of those lucky dozen, you have to continue on to an elite MBA or Law Degree.

 

[ultimatebob]

Pay your fucking debts.

Of course, publicly shaming those that try to skirt their responsibilities is a viable alternative.

That's not always possible. For example, I know someone who racked up about $80K in student loans and then flunked out of med school in their final year due to drug problems.

There is no way in hell they'll ever be able to pay that off that debt working a fast food or retail type job, which is probably the only job they'll be able to get while those drug charges are on their record.

 

[soulcougher73]

Sweet. Go get to get a couple degrees. Can't find a job then wash it all away. Credit rating will rebound in no time totally debt free. Score.

 

[SunnyD]

I presume you speak of discharging federal student loans here...

Currently they are not. So a word to the wise would be to pay your loan so the interest doesn't balloon out of control and you end up holding a piece of cardboard on tumblr.

Currently they are, and always have been... but the bar is exquisitely high:

only if the bankruptcy court finds that repayment would impose undue hardship on you and your dependents.

It is not unprecedented, but very rare especially since Ed. has a lot of different repayment and forbearance options available to individuals that the burden on the individual amounts almost to negligence in most cases.

 

[s0me0nesmind1]

That's not always possible. For example, I know someone who racked up about $80K in student loans and then flunked out of med school in their final year due to drug problems.

There is no way in hell they'll ever be able to pay that off that debt working a fast food or retail type job, which is probably the only job they'll be able to get while those drug charges are on their record.

Soooo what do you expect the government to do? $80k isn't a drop in the bucket when you consider that is for EVERY college student that took out loans and is too stupid to know how to major for a successful career.

I expect them to pay it. Enjoy garnished wages for life if you're too stupid to get a real job.

 

[Printer Bandit]

gov't should forgive all student loan debts.

what's the worse that can happen?

 

[Brainonska511]

Soooo what do you expect the government to do? $80k isn't a drop in the bucket when you consider that is for EVERY college student that took out loans and is too stupid to know how to major for a successful career.

I expect them to pay it. Enjoy garnished wages for life if you're too stupid to get a real job.

And if you try to turn your life around and have a record, good luck, because you're going to need a lot of it. That scarlet letter keeps a lot of doors permanently shut.

 

[Brainonska511]

Pay your fucking debts.

Of course, publicly shaming those that try to skirt their responsibilities is a viable alternative.

If you want to get angry, read this person's ridiculous op-ed on why they chose to default: http://nyti.ms/1IsIxIU

He has 2 degrees from Columbia (BA and MA), author of 4 books, etc... with a seemingly successful career, coupled with the likely lower amount he would have had to borrow when he obtained his degrees compared to today, yet chooses to be a deadbeat.

 

[s0me0nesmind1]

gov't should forgive all student loan debts.

what's the worse that can happen?

The complete downfall of our economy?

We have more student debt than we do credit card debt (which is amazing). The only debt that has more would be mortgage debt.

 

[s0me0nesmind1]

If you want to get angry, read this person's ridiculous op-ed on why they chose to default: http://nyti.ms/1IsIxIU

He has 2 degrees from Columbia (BA and MA), author of 4 books, etc... with a seemingly successful career, coupled with the likely lower amount he would have had to borrow when he obtained his degrees compared to today, yet chooses to be a deadbeat.

Wow.... So he is a "professional writer"... writes stupid opinion pieces from the NY Times.... I would assume he gets paid for that? Why aren't his wages being garnished?

Also, his PARENTS COSIGNED. I'm sure his mom thinks her kid is a fucking deadbeat. As far as I know, his mom's credit is ruined, and she won't be able to get rid of that debt either. Congrats kid, you fucked up your moms life just as much as yours. Enjoy writing papers! THATS SO REWARDING!!

 

[poofyhairguy]

I expect them to pay it. Enjoy garnished wages for life if you're too stupid to get a real job.

Yeah, but what you expect and what the political reality is are two different things. I think debt forgiveness will be a huge vote buyer among the millennial crowd.

 

[Mai72]

The complete downfall of our economy?

We have more student debt than we do credit card debt (which is amazing). The only debt that has more would be mortgage debt.

Aren't we the only country that puts our students in so much debt?

Is there another country that profits off our students like America? I don't think so.

IMO, the whole thing needs restructuring. All the way from how these loans are distributed to high cost of college. If not, we are in for some massive pain. You can't get blood from a stone, and the longer college educated people have to hold onto their loans the harder it will be for them to contribute to our society. In the end the taxpayers will have to pick up the tab. Sooner or later...

 

[Mai72]

Yeah, but what you expect and what the political reality is are two different things. I think debt forgiveness will be a huge vote buyer among the millennial crowd.

The second biggest holders of student loan debt are people over 40. They went back to school after the '07 crisis so they could develop a larger skill set to compete in this new marketplace. In the mean time they took out massive student loans with the thought that they would be able to pay it back when they got a better job. The problem was the job market didn't go as planned and many people were left with a college degree and no job.

I'm not making an excuse or putting the blame on anyone. Just stating facts.