What is the student loan debt double standard? In 2009 Congress passed the Credit Card Act which significantly reformed the lending practices of credit card issuers. One of the hallmark provisions of that act dealt with credit card offers to those under age 21. Congress, in its wisdom, determined that college students were not sophisticated enough to resist the onslaught of credit card marketing, unable to make informed financial decision, and not responsible enough to handle credit cards. So, the Act requires parental signature on credit card applications for anyone under age 21 unless the student can demonstrate means to repay the debt; (more…)
Archive for the ‘Student Loans’ Category
Student Loan Double Standard, Time For Fresh Approach.
Wednesday, January 12th, 2011
Did You Know? It’s Official Government Policy to Oppose Bankruptcy Discharge of Student Loan Debt!
Monday, November 1st, 2010For Perkins Loans it is official Department of Education policy to oppose a bankrupt debtors request for hardship discharge of student loan debt if the cost to defend is not expected to exceed one-third of the balance owed plus all penalties, interest and collection costs. See 34 C.F.R. § 674.49(C). (C.F.R. is Code of Federal Regulations). Similar policy is in place for Non-Perkins student loans, 34 C.F.R. 682.402. (more…)
My Wages Are Being Garnished For A 30 Year Old Student Loan; What Now?
Wednesday, September 29th, 2010Question:
I filed bankruptcy in 1977. The attorney said that my student loads could be charged off? But now starting in 2010 they are garnishing my wages. Did the attorney lie to me at the time? What are my options to stop the garnishment?
Answer:
‘Charged off’ is a technical term or term or art. (more…)
What Is Involved In a Bankruptcy Hardship Discharge of Student Loan Debt?
Monday, September 20th, 2010Question:
I filed for ch. 7 bankruptcy and discharge was granted and the case was closed. A few months after, I realized I should’ve filed an adversary proceeding to seek the discharge of my student loan debt. I read that a bankruptcy case can be reopened for up to a year after it’s closed, and this is permitted under 11 USC 350.
Can I reopen the case to file an adversary proceeding, (more…)
