Bankruptcy
Bankruptcy and Stipend Benefits
Student bankruptcy is an ongoing problem for the multitude of student loan programs. To address this problem, Congress passed 11 U.S.C.Sec 523(a)(8) of the Bankrupcy Code. Sec. 523(a)(8) states: Read more »
Bankruptcy and Adverse Credit History
As mentioned in an earlier article, student bankruptcy is an ongoing problem for the multitude of student loan programs. 11 U.S.C.Sec 523(a)(8) of the Bankruptcy Code, as you are aware, has made student loans non-dischargeable. In The Matter of Jimmy Clark Taylor and Deborah Carter Taylor and the subsequent appeal Deborah Taylor, Appellee v. United States of America, Department of Education, Appellant, the issue arose as to whether a student loan lender may refuse a student loan based on the applicants prior bankruptcy.
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Bankruptcy and Education Benefits
As student debt increases and more students file for bankruptcy, a major issue in these actions is the definition of an “educational benefit”. Under current bankruptcy law, similar to the non-dischargeability of student loans, an educational benefit is also non-dischargeable.
Pursuant to 11 U.S.C. sec. 523(a) of the Bankruptcy Code:
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Bankruptcy and Outstanding Tuition Balances
In Boston University (the College) v. Rajesh Mehta (the student), Docket No. 01-2586, the College appealed a United States Bankruptcy Court finding that a student’s outstanding tuition balance owed to the College is not a loan and is dischargeable in bankruptcy. Read more »
Perkins Loan
In May of 1987, a student attending Temple University borrowed $750.00 through the University’s Federal Perkins Loan/National Direct Student Loan Program. The debtor ceased attending Temple in June of 1988.
Under the terms of the Perkins Note, the debtor was required to begin quarterly repayment on the Note at 5% simple interest beginning in December, 1988. The debtor failed to make any of the scheduled payments.
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