ECMC – Your Student Loans are a Life Sentence

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 … Read more

Murrell v. Educational Education Management Corp.: An Ohio Bankruptcy Court Misinterprets “Undue Hardship”

Calvin Murrell was thrown out of work in 2000 due to knee and back injuries. Murrell then attended Stautzenberger College, a private, for-profit community college with a total enrollment of around 300 students. He obtained a degree in web tech at Stautzenberger and then attended Spring Arbor College and Owens Community College, but he failed … Read more

Additional Criteria Used to Defend Discharge of Federal Student Loans in Bankruptcy

I was just reading through a 2006 case where the Appeals court listed out a set of “additional circumstances” that is appropriate to rely upon to make the argument for discharge of the student loans in bankruptcy under undue hardship. If you are thinking of pursuing a discharge of your federal student loans and claim … Read more

Using This Information Man Discharges $130K in Federal Student Loans in Bankruptcy

Interest rate negotiation can result in a lower interest rate than you are paying now.

I’ve been going on-and-on about a July 7th, 2015 statement put out by the U.S. Department of Education that talked about how the government has made allowances to approve the discharge of federal student loan debt through bankruptcy, in some situations; namely, under the “Undue Hardship” clause of the Federal Bankruptcy Code, under the exception … Read more

My Ph.D. Loans Will Leave Me Old, Broke, Hungry, and Cold

Question: Dear Steve, I have $175,000+in student loans from grad school programs. My first grad degree program was a PhD in political science; the second a high school teaching license in social studies. Neither field has been hiring over the past 15 years at anything other than a negligible rate. Because I have my masters … Read more

Teacher Discharges Loads of Student Loans in Bankruptcy. ECMC Fights Back.

Today I’m looking at another bankruptcy discharge case, see more here, where a bankruptcy judge felt it was appropriate to allow for a legal discharge of student loan debt. In this case the consumer represented herself in the action and has fought a valiant battle. Even though President Obama and the Department of Education have … Read more

Bankruptcy Court Wants to Discharge Spousal Consolidation Student Loans. Educational Credit Management Corporation Says, “Not So Fast.”

I have to admit I am totally perplexed by the media and popular myths that believe student loans can’t be discharged in bankruptcy. Even a lot of bankruptcy attorneys believe this wildfire myth. Thanks to some amazing readers and tipsters I’ve just received a collection of cases where the consumer managed to have their student … Read more

Department of Education Reaches Decision About Student Loans and Bankruptcy

The Department of Education has just released guidance on how it will handle bankruptcy discharge requests for government backed student loan debt. And while the guidance is helpful, it’s also a bit disingenuous that it places the burden on students who believed what schools and colleges sold them as a smart financial move. The guidance … 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

How to Really Discharge Your Student Loans in Bankruptcy. Many Can. But Never Try.

For years we’ve all heard the same message that it’s near darn impossible to discharge student loans in bankruptcy. We’ve heard that the undue hardship standards make it so onerous that expecting a student loan discharge is all but an act of God. But what if that belief was actually more myth than fact? Recently … Read more