Mother Wins Bankruptcy Discharge of National Collegiate Student Loan Trust Student Loans

A Los Angeles bankruptcy judge ordered student loans to be discharged on July 6, 2015 because they did not qualify as education loans under 11 U.S.C. 523(a)(8). Judge Neiter, United States Bankruptcy Judge in the Los Angeles Division of the Central District of California, presided over the adversary proceeding case no. 2:14-ap-01722-RN, Schwartz v. National … Read more

Can You Discharge Private Student Loans in Bankruptcy?

There’s a big misconception that private student loans can never be discharged in bankruptcy. People have repeated that statement so often they believe it to be a fact. The only problem is it’s not quite true. Some private student loans are clearly eligible to be wiped away in a consumer bankruptcy. Even in a Chapter … Read more

The Real Reason Student Loans Should Be Dischargeable in Bankruptcy

President Obama got people thinking when he raised the possibility of discharging certain education loans in bankruptcy within the context of the executive action he signed last week — the one that’s intended to ensure unfettered access to government-sponsored relief programs and a means for registering complaints about unfair treatment. Not to be outdone, 13 … Read more

Stafford and William D. Ford Loans Discharged in Bankruptcy

As part of my ongoing look at student loans and bankruptcy, today I’m reviewing a case where both a Federal Stafford Loan and a Federal William D. Ford Direct Loan were completely discharged in a chapter 7 bankruptcy. 14-40052 Branneky According to court documents, the Plaintiff filed a voluntary petition for relief under Chapter 7 … Read more

A Look at a Cosigners Navient Student Loans Discharged in Bankruptcy

As part of what has become an ongoing look at student loans discharged in bankruptcy the example today is where a cosigner discharged their liability for federal student loans with Navient Solutions. This case is yet another example of how the financial hardship of having to repay unmanageable student loans can lead to a discharge … Read more

Half Million Dollars of Federal Student Loans Discharged in Bankruptcy

So many people continue to assume student loan debt can’t be discharged in bankruptcy. Even bankruptcy attorneys perpetuate this myth as well. In previous articles, that you can find here, I’ve shown specific examples of both federal and private students loans discharged. I’ve even pointed out broad niches of student loan debt not protected by … Read more

I Was the Biggest Jerk to Get So Buried in Student Loans

“Dear Steve, I have $130,000 in private student loans from Wells Fargo, Sallie Mae, Citibank and Discover. The minimum monthly payment is $1,595. Since graduating in 2011 with a liberal arts bachelor’s degree, I’ve made monthly minimums through myriad part time jobs, usually several at once, odd jobs and temporary positions through a staffing agency–never … Read more

I Can’t Afford My Sallie Mae Student Loans With My Art Degree. – James

Huffington Post Reader Question Dear Steve, Attended the Art Institute of Ft. Lauderdale, FL for game art/illustration from 2004 to 2006, transferred to the Art Institute of Philadelphia, PA for animation, from 2006 to 2007, transferred to the Pennsylvania Academy of the Fine Arts in 2007 and graduated in 2012 with a certificate in painting. … Read more

These Private Student Loans Can Be Easily Discharged in Bankruptcy

In my recent article and research on the discharge of Sallie Mae and private student loans, here, I discovered there is a special subset of private student loans that can be easily discharged in a consumer bankruptcy filing. Update June 15, 2016 New information comes out on private student loans and bankruptcy involving if the … Read more

A Look at Sallie Mae and Other Student Loans Discharged in Bankruptcy in 2012

This article is part of my ongoing look at the possibility of discharging student loans in bankruptcy. It is a followup to my article here where I looked at federal student loans that received a modification, settlement or elimination as part of a bankruptcy adversary proceeding filing in 2012. This time I’m taking a look … Read more

Federal Student Loans Discharged in Bankruptcy. A Look at the Surprising 2012 Data and Cases.

The more I research and study the reality of dealing with student loans through bankruptcy the more I am under the opinion the data does not support the assumptions many have that no good options are available in bankruptcy for student loans. In fact my research appears to show that even for government backed student … Read more

Big Case Proving Ability to Discharge Student Loans in Bankruptcy

Times are changing when it comes to being able to discharge student loans in bankruptcy. And while the road has been paved by a few who have been successful, one 2013 case decided by the U.S. Appeals Court in the Ninth Circuit seems like it gives hope to those who want to discharge their student … Read more

Why Transferring Student Loans to Credit Cards is Not a Good Idea

As the looming crisis of student loan debt nears, some enterprising debtors are no doubt getting desperate. Student loan debtors are being hounded by collection agencies night and day, tax refunds are being intercepted, and wage garnishments are inevitable. So some enterprising debtors are getting the idea to transfer their student loan debt to credit … Read more

Student Loans and Suicide. I’m a Lawyer Living in a Hovel in New York With Private Student Loan Debt and Thinking of Becoming an Escort.

“Dear Steve, I have defaulted on $90,000 in student loans. The remainder of my loans (I believe they are now somewhere around $100,000) are in forbearance. Last year I made a total of about $40,000, first as a temporary administrative assistant and then as a full-time employee of a corporation. Unable to find a job, … Read more

I Can’t Pay Sallie Mae – Carlos

Carlos “Dear Steve, Sallie Mae loaned me $10,537.50 on 08/31/1994. I started making payments on it in 2003. Have been in forbearance three times. I have already paid about $7,000 on this loan. he loan is on forbearance until 03/07/2009. Because of financial hardship I wanted to settle with Sallie Mae for $4,000. Total Principal … Read more