student loan discharge Archives

Biden Administration Cancels Almost $10 Billion in Student Loan Debt. Who Got Relief?

Posted on August 31, 2021by Admin

In total, the Department of Education has approved discharging $8.7 billion in student loan debt for more than 450,000 borrowers.

Click here to see if you are eligible.

That amount has included:

$7.1 billion for borrowers who were eligible for relief because of “total and permanent disability.”
$55.6 million in loan discharges for students who attended three trade schools that officials said misrepresented themselves to students.
Another $1 billion for other students defrauded by their schools.

The Biden Administration has cancelled nearly $10 billion in student loan debt since January 2021, according to the U.S. Department of Education. The Department reported they have approved $9.5 billion in student loan discharges since January 2021, affecting approximately 563,000 borrowers. This has given borrowers the ability to tackle other debts, invest and increase savings.

A New Loophole for Certain Kinds of Private Student Loans

Posted on October 21, 2020by Admin

Student loan debt has traditionally been extremely difficult to discharge in consumer bankruptcy cases. For those consumers struggling with insurmountable student loan debt, the ability to seek a fresh start through a bankruptcy case has been impossible for this reason. Even if they are able to successfully discharge most of their debts, they still walk away with a significant amount of student loan debt, including both federal and private student loans. A new loophole could change this fact for borrowers who are struggling to pay their private student loan debts.

A staggering 45 million American consumers owe a collective $1.5 trillion in student loan debt. Over one million borrowers defaulted on their student loan debt annually. The only method available to these borrowers to discharge their loans in bankruptcy is to meet the “undue hardship” test. Unfortunately, courts view this exception very narrowly and not all courts apply the test uniformly.

student loan debt, Student Loans

Bankruptcy Court Discharges $200,000 in Private Student Loan Debt for Colorado Couple

Posted on September 15, 2020by Admin

A major victory was scored for student loan borrowers after a U.S. Court of Appeals for the Tenth Circuit issued a ruling stating that a Colorado couple’s private student loan debt could be discharged in their personal bankruptcy case. The ruling allowed $200,000 of private student loan debt to be wiped out, breaking the long-standing stigma that student loan debt, particularly private student loan debt, is near impossible to discharge in a bankruptcy case.

The Colorado couple had taken out $200,000 in private student loans from Navient, one of the nation’s largest student loan issuers. The ruling comes after a similar bankruptcy case, where the borrower also had their student loan debt discharged. In that case, the loan servicer appealed the ruling.