by Mark Haven,
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UNITED STATES, Dec 28 — I am in default on my student loans. Can bankruptcy help me get rid of this debt? Student loans are non dischargeable, generally. To discharge a student loan obligation through bankruptcy you must file a complaint requesting that your government-owned student loans be discharged pursuant to section Bankruptcy Code Section 523(a)(8). If you make payments under an ICR plan for twenty-five years, and there are still amounts left owing, those unpaid amounts are forgiven
I
am in default on my student loans. Can bankruptcy help me get rid of this debt? Student loans are non dischargeable, generally. To discharge a student loan obligation through bankruptcy you must file a complaint requesting that your government-owned student loans be discharged pursuant to section Bankruptcy Code Section 523(a)(8). The standard for the Court to determine your student loan obligation discharged was set in the case Brunner v. New York State Higher Education Services Corp. in 1987.
This means you need to satisfy the so-called “Brunner Test” and the court is to consider:
(1) you current level of income and expenses, and determine whether you can maintain a minimal standard of living for you and your dependents if you are required to repay the loans;
(2) whether there are additional circumstances suggesting that your current financial condition is likely to continue for a significant portion of the repayment period; and
(3) whether you have made a good faith attempt to repay the loans. The “Bruner Test” is a very high standard and basically, unless you care for or are suffering from a disability that will continue for your lifetime, that prevents you for earning sufficient income to support you and your family and you have made a good faith effort to repay your loans, you will be unable to discharge your student loan debts through a bankruptcy. Testimony in the Congress hearings in 1998 intended undue hardship claims to be considered in light of “the availability of various options to increase the affordability of student loan debt, including deferment, forbearance, cancellation and extended, graduated, income-contingent and income-sensitive repayment options.” H.Rep. No. 750, 105th Cong. 2d Sess. 408 (1998).
There are other options to consider on your student loans. One such option is through the United States Department of Education, William D. Ford Federal Direct Loan Program (“Direct Loan”), offers various repayment options for student loan debtors. One of these is the Income Contingent Repayment Plan (the “ICR” plan). Essentially, once a student loan debtor is on an ICR plan, monthly payments are calculated on the basis of adjusted gross income, family size, and total amount of Direct Loan debt.
This can give student loan debtors the flexibility and breathing room they need during difficult times. The maximum repayment period under an ICR plan is twenty-five years. Direct Loan provides a handy calculator for approximating ICR plan payments. The calculator is located http://www.ed.gov/ offices/OSFAP/DirectLoan/ calc.html. If you make payments under an ICR plan for twenty-five years, and there are still amounts left owing, those unpaid amounts are forgiven. Of course, there may be tax consequences as a result of this forgiveness.
Posted: Rated: 5.0»Can I Get Rid Of This Student Loan Debt?
‘The ultimate scheme, Bernie Madoff may look like child play compared to what the Bush administration did for the student loan industry officials and lobbyists in charge of the Education Department.
Lenders such as Sallie Mae and Nelnet showered Congressional leaders with hundreds of thousands of dollars in contributions. The result was a virtually unregulated industry exploiting a federal program to enrich itself at the expense of students and the taxpayers alike. Lenders ballooned loan debt by compounding improper interest loan rates to the point of no hope for recover, short of death.
They routinely violated a federal law forbidding lenders from providing, illegal inducements to colleges and financial aid administrators, loan companies push greed to exploit high levels of expensive private loan debt on low-income families and working class students who had little hope of paying it back. Their incentive was to let loans balloon, because if the borrower could not pay the taxpayer would have to cover the debt. The lenders didnt care about the borrower, all they cared about was their end of the month numbers, and their ability to scheme the government at the expense of students and taxpayers.
The student loan industry was a virtually unregulated fraudulent and deceptive scheme that is costing multitude of student and families hardship and disparity. Sallie Mae claims it must abide, under U.S. Bankruptcy Code 11U.S.C. 523 (a) (8). The only remaining basis for discharge is a ruling favorable to the debtor from an adversary proceeding, brought by the debtor, for undue hardship. I ask you, isnt the testimony from thousands of victims that have been exploited by the student loan industry and a bias and discriminatory system, fortified by the testimony of the loan industry whistle-blowers, justifiable cause of undue hardships favorable to the multitude of victims?
What authority, Congressional or higher can testify on the validity of why student loans should specifically be exempt from bankruptcy protection? Criminals and convicts in this country have more right to a debt free education than a struggling student whose only crime is their desire for a quality education. Where is the transparently of the difficulties and hardships, where are the Congressional Hearings on the student loan industry, where are the Whistle-Blowers? Why isnt Martha Holler on the stand justifying whose rules she must abide at all cost? Student loan victims make your voice heard. Contact your representatives. Petition investigating Sallie Mae for discrimination, fraudulent and deceptive practices in the underwriting, origination process and collections of private student loans and routinely exploiting of a federal program to enrich itself at the expense of students and the taxpayers alike. Congressional leaders have taken the first step to rectify this injustice and put the interests of students and taxpayers first. Let our voices echo through the halls of congress that justice may triumph over callous greed and corruption, vindicating the promise of the most open and accessible administration in American History.
Sincerely
Fred W. Mossholder’
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Fred Mossholder
»Can I Get Rid Of This Student Loan Debt?
‘The ultimate scheme, Bernie Madoff may look like child play compared to what the Bush administration did for the student loan industry officials and lobbyists in charge of the Education Department.
Lenders such as Sallie Mae and Nelnet showered Congressional leaders with hundreds of thousands of dollars in contributions. The result was a virtually unregulated industry exploiting a federal program to enrich itself at the expense of students and the taxpayers alike. Lenders ballooned loan debt by compounding improper interest loan rates to the point of no hope for recover, short of death.
They routinely violated a federal law forbidding lenders from providing, illegal inducements to colleges and financial aid administrators, loan companies push greed to exploit high levels of expensive private loan debt on low-income families and working class students who had little hope of paying it back. Their incentive was to let loans balloon, because if the borrower could not pay the taxpayer would have to cover the debt. The lenders didnt care about the borrower, all they cared about was their end of the month numbers, and their ability to scheme the government at the expense of students and taxpayers.
The student loan industry was a virtually unregulated fraudulent and deceptive scheme that is costing multitude of student and families hardship and disparity. Sallie Mae claims it must abide, under U.S. Bankruptcy Code 11U.S.C. 523 (a) (8). The only remaining basis for discharge is a ruling favorable to the debtor from an adversary proceeding, brought by the debtor, for undue hardship. I ask you, isnt the testimony from thousands of victims that have been exploited by the student loan industry and a bias and discriminatory system, fortified by the testimony of the loan industry whistle-blowers, justifiable cause of undue hardships favorable to the multitude of victims?
What authority, Congressional or higher can testify on the validity of why student loans should specifically be exempt from bankruptcy protection? Criminals and convicts in this country have more right to a debt free education than a struggling student whose only crime is their desire for a quality education. Where is the transparently of the difficulties and hardships, where are the Congressional Hearings on the student loan industry, where are the Whistle-Blowers? Why isnt Martha Holler on the stand justifying whose rules she must abide at all cost?
Student loan victims make your voice heard. Contact your representatives. Petition investigating Sallie Mae for discrimination, fraudulent and deceptive practices in the underwriting, origination process and collections of private student loans and routinely exploiting of a federal program to enrich itself at the expense of students and the taxpayers alike. Congressional leaders have taken the first step to rectify this injustice and put the interests of students and taxpayers first. Let our voices echo through the halls of congress that justice may triumph over callous greed and corruption, vindicating the promise of the most open and accessible administration in American History.
Sincerely
Fred W. Mossholder’
Rating: 5.0 out of 5.0 based on 1 discussion(s).
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