Category Archives: Bankruptcy and Student Loans
Tuition Repayments on the Rise | Kelley Kaplan & Eller
$276,434.80 – that is how much money the Wall Street Journal is reporting has been returned to college graduates whose parents filed for bankruptcy since 2014. Under U.S. law, bankruptcy filers are allowed to sue for a return of funds spent which did not yield a “reasonable equivalent value.” Though it is up for… Read More »
Student Aid Center Inc. Bankruptcy
Oh, the irony! Student Aid Center Inc., a company which garnered some negative attention for allegations of preying on desperate student loan borrowers, recently filed for bankruptcy. According to MarketWatch, the company claimed between $500,001 and $1 million in assets and between $1,000,001 and $10 million in estimated liabilities. Industry Accusations Student Aid Center… Read More »
Loan Forgiveness Corinthian Students
You may be familiar with the news of Corinthian College having filed for bankruptcy last year and with the allegations of Corinthian’s fraud. The bankruptcy and fraud allegations began when the government investigated Corinthian’s claims of superior job placement prospects for students attending its programs. As a result of Corinthian’s fraud, tens of thousands… Read More »
Supreme Court Denies Appeal on Student-Loan Erasure
Student loan debt continues to be a hot topic and a major problem that many current and former students are facing throughout the United States. Today, the total amount of student loan debt in the US has reached a staggering $1.3 trillion, which is being shouldered by more than 40 million Americans. These numbers… Read More »
Current case could impact Americans battling student loan debt
Wiping out student loan debt in bankruptcy has been nearly impossible for Americans since federal law excluded most student loans from being eligible for discharge in the 1970s. The only viable action a debtor can take to evade these harsh regulations is to claim that repaying the incurred student loan debt would result in… Read More »
Obama administration aims to make private student loan bankruptcy viable
For many Americans, repaying student loans is incredibly difficult, and may even lead to bankruptcy as it is extremely difficult to make high student loan payments and pay other debts regularly. The Obama administration has recently called for private student loan borrowers to be given an opportunity to relinquish responsibility for their loans in… Read More »
Tuition recovery lawsuits- a new phenomenon
As students struggle to pay exorbitant college tuition costs, parents often times become more inclined to provide financial assistance to soften the blow. In spite of their kind-hearted efforts, these parents can be sued by the bankruptcy trustee for their student’s outstanding school loans when the parents file for bankruptcy. These are known as… Read More »
Bankruptcy can facilitate obtaining withheld college transcripts
One of the most frustrating occurrences after graduating college can be your inability to obtain your transcripts from the university you attended. This can happen when a student has student loans in default. A common procedure that may force a university to relinquish your transcript is filing for bankruptcy. A university policy of holding… Read More »
Will disability allow me to discharge student loans?
In some cases, an individual who is granted Social Security disability benefits can discharge his student loans. While this law aims to aid those who become burdened by a disability, the student loans in question are not dischargeable in every circumstance. In some instances, a disabled individual’s private or state sanctioned loans may not… Read More »
Millennial parents hope to save more for schooling
After likely being bombarded with student loans themselves, many Millennial parents are hoping to prevent their children from going through the same experience. Though they are setting more money aside for future education of their children, it still may not be enough to cover the cost of exorbitant tuition costs. Increased savings, increased tuition… Read More »