Between 2006 and 2015, Jamie Mudd took out 41 student loans to attend Heald College, a for-profit institution, and San Joaquin Delta College, a public institution. In 2015, she rolled these loans into two consolidated federal loans, totally about $72,000. Mudd put her student loans into an income-based repayment plan (IBRP) that established her monthly …
Mendenhall v. Navient Corporation: A $76,000 student-loan debt grows fivefold In 2007, Steven Mendenhall obtained a bachelor’s degree in film and video production from Brooks Institute of Photography, a for-profit college in California, which later closed. To finance his studies, Mendenhall took out about $75,000 in federal student loans and $76,000 in private loans from …
The U.S. Department of Education and Educational Credit Management Corporation (ECMC), DOE’s ruthless sidekick, don’t want anyone to get bankruptcy relief. This has been DOE’s policy for many years. Let’s take a look at Mosley v. Educational Credit Management Corporation, decided by the Eleventh Circuit back in 2007. As we will see, Mosley was clearly …
In Greene v. U.S. Department of Education, Judge Richard Posner, a universally esteemed jurist, remarked that the criteria for determining “undue hardship” in student-loan bankruptcy cases are complex. Nevertheless, Judge Posner observed, “[t]he size of the debt is relevant–the larger it is, the more likely that imposing full liability on the debtor will produce an …
When it comes to a rapidly accelerating financial burden on American families, there is no greater concern than student loans. The debt is burdensome and unfair on many levels that I’ll explore below. However, there is a straightforward and simple solution for dealing with all of this outside of struggling to develop a fair forgiveness …
Cherie Ann Hlady graduated from Hofstra Law School in 2006. She passed the New York bar exam and began practicing law. Unfortunately, Hlady could not make ends meet as a practicing lawyer. Ten years after getting her law degree, she filed for bankruptcy. Hlady took out student loans totaling $40,000 to finance her legal education, …
Mark Kantrowitz from Private Student Loans Guru recently wrote an article for Forbes – How To Bankrupt Your Student Loans. The article is great but it contains the best list of private student loans that are not qualified education loans and should be able to be discharged in bankruptcy as I describe in this post. …
An avenue of inquiry that is being pursued in an ongoing bankruptcy adversary proceeding might help to bring some clarity to what is the actual cost of attending a school where student loans are utilized. The court arguments are getting into the weeds, and that’s okay. Every nook and cranny is being evaluated to reach …
A group of attorneys are fighting the good fight in a case involving another stinking National Collegiate Student Loan Trust case. The arguments about why these particular private student loans should be discharged in bankruptcy have been sharpened through several cases and litigation. When I read the summary, in this case, it seemed that the …
Here is a very interesting bankruptcy case from earlier in 2020. Judge Jennemann had no patience for National Collegiate Student Loan Trust and eliminated the private student loans in full. She also awarded attorney fees to the consumer as well. This case shows, if a creditor claims your private student loans are exempt from discharge …