Reminder to Law Graduates: Student Loans Are Not Dischargeable

Early last year I posted about recent law graduates who filed bankruptcy due to student loans: 
‘Breaking News (02/03/2012): Law grads go to Court for Bankruptcy Protection’

http://lifesmockery.wordpress.com/2012/02/03/breaking-news-02032012-law-grads-go-to-court-for-bankruptcy-protection/

This is to remind law graduates and those who plan to attend law school and estimate that if their law career doesn’t hold muster that they can seek relief from the U.S. Bankruptcy Court. This is not the case, you do not have the protection of the law on your side, it is all for big business and corporate greed. As other bloggers continue to emphasize: student loans are non-dischargable debt.

The following TIME magazine article, also from last year explains the same: Why Can’t You Discharge Student Loans in Bankruptcy, TIME Magazine, February 09, 2012:

http://business.time.com/2012/02/09/why-cant-you-discharge-student-loans-in-bankruptcy/

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4 Comments »

  1. DocHollidaye Said:

    Dischargeable is one thing but I would think that in serious financial crisis repayment plans can be successfully negotiated.

  2. Nando Said:

    The lender pigs love the current arrangement. As a sitting U.S. senator, Dick Durban, said: “Frankly, the banks own the place.”

  3. Russ Said:

    Here’s one effect I see and why bankruptcy will never be allowed for student loans. If I can declare bankruptcy at some point, banks won’t make as many private loans to borrowers. Therefore, fewer students will be able to afford the astronomical tuitions that exist today. And so, universities will have to lower tuition or get by with fewer students. Essentially, the universities and their ubiquitous employees will suffer and that can’t be allowed.

    • A Law School Victim Said:

      I disagree, most student loans are subsidized by the federal government, giving the borrower more flexibility in terms of repayment options. From what I perceive these are the bulk of student loans, private student loans are likely used when the former isn’t sufficient to cover costs of attending university. This does not upset the status quo of private lending. In addition, the current administration made modifications to eliminate the banks as the middle men who simply collected servicing amd financing charges. The monies that middle men would have collected on these loans went to create more pell grants or to increase the amounts of pell grants issued to low income college applicants. The issue is that the bulk of student loans are insurmountable debt which is inescapable in an average person’s lifetime.

      On a recent episode of bill Maher the host of ‘Dirty Jobs’ (as you can see he is pro blue collar) stated: ” We are lending money we don’t have, to college kids who can’t afford to pay it back for jobs that do not exist when they graduate.” So maybe these institutions should not be in the for profit business of financing education. Education itself and methods of paying for it needs an overhaul.


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