Protesters gathered outside the U.S. Supreme Court ahead of oral arguments in two cases challenging President Joe Biden’s plan to forgive $400 billion in student loan debt.
Life led Elizabeth Hadzik and Kim Coles to bankruptcy court.
Hadzik, 50, a therapist in Maryland, does not earn enough to support herself and her adult son, whose health issues have cost thousands of dollars. Coles, an accountant in Oregon in her late sixties, was laid off last year.
Both have tens of thousands of dollars in student loan debt. Despite having been repaying those loans for years, they can no longer do so. With no alternative, both have turned to the drastic and typically unsuccessful method of trying to discharge their loans in bankruptcy court, which costs them a lot.
The disparities in how the government handles their cases suggest that student loan relief is not attainable.
Historically, only one in a thousand student loan discharge cases has succeeded in bankruptcy court. Last year, the Justice Department issued new guidelines for federal attorneys aimed at streamlining the process and increasing the number of discharge cases. In November of this year, the department stated that about 630 cases had been filed in the 10 months using the new system, and that “the vast majority” of those borrowers received full or partial discharge.
“Since the new process is working well, the Justice Department is not making any changes to the guidelines at this time,” according to a statement from Vanita Gupta, the associate attorney general, in a statement issued last month.
Bankruptcy rarely wipes out student loans. Even when it does, the U.S. government resists.
Escaping student loan debt is not simple. From working multiple jobs to living with their parents, millions of Americans are doing their best to cope with the massive economic burden of obtaining a recent college degree.
For various reasons, the road to relief through bankruptcy court is a less traveled one. The success rate for such cases has been dismal. The process can be lengthy. Critics argue that the legal standards borrowers must meet to qualify for discharge are exceedingly high.
Even President Joe Biden is among those critics, despite his support for the 2005 law that made the process more difficult when he was a senator. His views have evolved over time, and in his 2020 presidential campaign, he promised to “end the ridiculous rules that make it almost impossible to discharge student loans in bankruptcy.”
The fairness of how the government handles discharge cases depends on the federal attorney assigned to the case and the jurisdiction where the case was filed.
Daniel Zibel, vice president of the National Student Legal Defense Network, says that despite the streamlined process, outcomes can still vary depending on where the case is filed.
Many irregularities can be traced, according to a USA TODAY review of recent discharge cases, as well as interviews and emails with more than a dozen borrowers, attorneys, and student loan experts. Whether a bankrupt borrower can actually discharge their student loans still depends on the federal attorney assigned to the case and the jurisdiction where the case was filed. The timeline also varies.
Despite the changes, some say it’s too early for the administration to claim success.
Dali Jimenez, a law professor at the University of California, Irvine, and director of the Student Loan Law Initiative, says, “I think it’s better than it was before. But that was a very low bar.”
Bankruptcy
Student loans are rarely discharged. Even when that happens, the U.S. government resists.
Escaping student loan debt is not a simple matter. From working multiple jobs to living with their parents, millions of Americans are doing their best to cope with the enormous economic burden that comes with obtaining a recent college degree.
For many reasons, the road to relief through bankruptcy court is less traveled. The success rate for such cases has been extremely poor. The process can be lengthy. Critics consider the legal standards that borrowers must meet to qualify for discharge to be too high.
Even President Joe Biden is one of those critics, despite supporting the 2005 law that made the process harder when he was a senator. His views have evolved over time, and in his 2020 presidential campaign, he promised to “end the ridiculous rules that make it almost impossible to discharge student loan debt in bankruptcy court.”
The fairness of the government’s handling of discharge cases depends on the federal attorney assigned to the case and the jurisdiction in which the case is filed.
Daniel Zibel, vice president of the National Student Legal Defense Network, says that despite the streamlined process, outcomes can still vary depending on the area where the case is filed.
Many inconsistencies can be traced, according to a USA TODAY review of recent discharge cases, along with interviews and emails with more than ten borrowers, attorneys, and student loan experts. Whether a bankrupt borrower can actually discharge their student loans still depends on the federal attorney assigned to the case and the jurisdiction where the case is filed. The timeline also varies.
Despite changes, some say it’s too early for the administration to claim success.
Dali Jiminez, a law professor at the University of California, Irvine, and director of the Student Loan Law Initiative, says, “I think it’s better than it was before. But that was a very low bar.”
Bankruptcy rarely discharges student loans. Even when that happens, the U.S. government resists.
Escaping student loan debt is not a simple matter. From working multiple jobs to living with their parents, millions of Americans are doing their best to cope with the enormous economic burden that comes with obtaining a recent college degree.
For many reasons, the road to relief through bankruptcy court is less traveled. The success rate for such cases has been extremely poor. The process can be lengthy. Critics consider the legal standards that borrowers must meet to qualify for discharge to be too high.
Even President Joe Biden is one of those critics, despite supporting the 2005 law that made the process harder when he was a senator. His views have evolved over time, and in his 2020 presidential campaign, he promised to “end the ridiculous rules that make it almost impossible to discharge student loan debt in bankruptcy court.”
The fairness of the government’s handling of discharge cases depends on the federal attorney assigned to the case and the jurisdiction in which the case is filed.
Daniel Zibel, vice president of the National Student Legal Defense Network, says that despite the streamlined process, outcomes can still vary depending on the area where the case is filed.
Many inconsistencies can be traced, according to a USA TODAY review of recent discharge cases, along with interviews and emails with more than ten borrowers, attorneys, and student loan experts. Whether a bankrupt borrower can actually discharge their student loans still depends on the federal attorney assigned to the case and the jurisdiction where the case is filed. The timeline also varies.
On
Despite the changes, some say it’s too early for the administration to claim success.
Dalí Jiménez, a law professor at the University of California, Irvine, and director of the Student Loan Law Initiative, says, “I think it’s better than it was before. But that was a very low bar.”
Bankruptcy rarely wipes out student loans. Even when it does, the U.S. government resists.
Escaping student loan debt is not straightforward. From working multiple jobs to living with their parents, millions of Americans are doing their best to cope with the immense economic burden of having a recent college degree.
For many reasons, the path to relief through bankruptcy court is a less-traveled one. The success rate for such cases has been abysmal. The process can be lengthy. Critics argue that the legal standards that borrowers must meet to qualify for discharge are exceedingly high.
Even President Joe Biden is one of those critics, despite supporting the 2005 law that made the process more difficult while he was a senator. His views have evolved over time, and in his 2020 presidential campaign, he pledged to “end the ridiculous rules that make it almost impossible to discharge student loan debt in bankruptcy court.”
The fairness in how the government handles discharge cases depends on the federal attorney assigned to the case and the jurisdiction in which the case is filed.
Daniel Zibel, vice president of the National Student Legal Defense Network, says that even with the more streamlined process, outcomes can still vary depending on the jurisdiction in which the case is filed.
Many inconsistencies can be traced, according to a review by USA TODAY of recent discharge cases, along with interviews and emails with more than a dozen borrowers, attorneys, and student loan experts. Whether a bankrupt borrower can actually discharge their student loans still depends on the federal attorney assigned to the case and the jurisdiction in which the case is filed. The timeline also varies.
Despite the changes, some say it’s too early for the administration to claim success.
Dalí Jiménez, a law professor at the University of California, Irvine, and director of the Student Loan Law Initiative, says, “I think it’s better than it was before. But that was a very low bar.”
Bankruptcy rarely wipes out student loans. Even when it does, the U.S. government resists.
Escaping student loan debt is not straightforward. From working multiple jobs to living with their parents, millions of Americans are doing their best to cope with the immense economic burden of having a recent college degree.
For many reasons, the path to relief through bankruptcy court is a less-traveled one. The success rate for such cases has been abysmal. The process can be lengthy. Critics argue that the legal standards that borrowers must meet to qualify for discharge are exceedingly high.
Even President Joe Biden is one of those critics, despite supporting the 2005 law that made the process more difficult while he was a senator. His views have evolved over time, and in his 2020 presidential campaign, he pledged to “end the ridiculous rules that make it almost impossible to discharge student loan debt in bankruptcy court.”
The fairness in how the government handles discharge cases depends on the federal attorney assigned to the case and the jurisdiction in which the case is filed.
Daniel Zibel, vice president of the National Student Legal Defense Network, says that even with the more streamlined process, outcomes can still vary depending on the jurisdiction in which the case is filed.
Many inconsistencies can be traced, according to a review by USA TODAY of recent discharge cases, along with interviews and emails with more than a dozen borrowers, attorneys, and student loan experts.
Many irregularities are tracked, according to a review by USA TODAY of recent discharge cases, as well as interviews and emails with more than ten borrowers, attorneys, and student loan experts. Whether a bankrupt borrower can actually discharge their student loans still depends on the federal judge assigned to the case and the jurisdiction in which the case is filed. The timeline also varies.
Despite the changes, some say it’s too early for the administration to claim success.
Dali Jimenez, a law professor at the University of California, Irvine, and director of the Student Loan Law Initiative, says, “I think it’s better than it was. But that was a very low bar.”
Bankruptcy rarely wipes out student loans. Even when it does, the U.S. government fights back.
Escaping student loan debt is not simple. From working multiple jobs to living with their parents, millions of Americans are doing their best to cope with the enormous economic burden imposed by obtaining a recent college degree.
For many reasons, the path to relief through bankruptcy court is less traveled. The success rate for such cases has been extremely poor. The process can be lengthy. Critics argue that the legal criteria borrowers must meet to qualify for discharge are too high.
Even President Joe Biden is one of those critics, despite his support for the 2005 law that made the process more difficult when he was a senator. His views have evolved over time, and in his 2020 presidential campaign, he promised to “end the ridiculous rules that make it almost impossible to discharge student loan debt in bankruptcy court.”
Justice in the government’s handling of discharge cases depends on the federal judge assigned to the case and the jurisdiction in which the case is filed.
Daniel Zibel, vice president of the National Student Legal Defense Network, says that despite the more streamlined process, outcomes can still vary depending on the jurisdiction where the case is filed.
Many irregularities are tracked, according to a review by USA TODAY of recent discharge cases, as well as interviews and emails with more than ten borrowers, attorneys, and student loan experts. Whether a bankrupt borrower can actually discharge their student loans still depends on the federal judge assigned to the case and the jurisdiction in which the case is filed. The timeline also varies.
Despite the changes, some say it’s too early for the administration to claim success.
Dali Jimenez, a law professor at the University of California, Irvine, and director of the Student Loan Law Initiative, says, “I think it’s better than it was. But that was a very low bar.”
Bankruptcy rarely wipes out student loans. Even when it does, the U.S. government fights back.
Escaping student loan debt is not simple. From working multiple jobs to living with their parents, millions of Americans are doing their best to cope with the enormous economic burden imposed by obtaining a recent college degree.
For many reasons, the path to relief through bankruptcy court is less traveled. The success rate for such cases has been extremely poor. The process can be lengthy. Critics argue that the legal criteria borrowers must meet to qualify for discharge are too high.
Even President Joe Biden is one of those critics, despite his support for the 2005 law that made the process more difficult when he was a senator. His views have evolved over time, and in his 2020 presidential campaign, he promised to “end the ridiculous rules that make it almost impossible to discharge student loan debt in bankruptcy court.”
Justice
In dealing with relief cases, the government relies on the federal attorney assigned to the case and the jurisdiction in which the case is filed.
Daniel Siebel, Vice President of the National Student Legal Defense Network, says that despite the more streamlined process, outcomes can still vary depending on the region where the case is filed.
Many inconsistencies can be traced, according to a review by USA TODAY of recent discharge cases, as well as interviews and emails with over ten borrowers, attorneys, and student loan experts. Whether a bankrupt borrower can actually discharge their student loans still depends on the federal attorney assigned to the case and the jurisdiction in which the case is filed. The timeline also varies.
Despite the changes, some say it is too early for the administration to claim success.
Dali Jimenez, a law professor at the University of California, Irvine, and director of the Student Loan Law Initiative, says, “I think it’s better than it was before. But that was a very low bar.”
Bankruptcy rarely erases student loans. Even when it does, the U.S. government resists.
Getting rid of student loan debt is not a simple task. From working multiple jobs to living with their parents, millions of Americans are doing their best to cope with the massive economic burden imposed by obtaining a recent college degree.
For many reasons, the path to relief through bankruptcy court is a road less traveled. The success rate for such cases has been extremely poor. The process can be lengthy. Critics argue that the legal standards borrowers must meet to qualify for discharge are exceedingly high.
Even President Joe Biden is one of those critics, despite his support for the 2005 law that made the process more difficult when he was a senator. His views have evolved over time, and in his 2020 presidential campaign, he promised to “end the ridiculous rules that make it almost impossible to discharge student loan debt in bankruptcy court.”
Justice in the government’s handling of discharge cases depends on the federal attorney assigned to the case and the jurisdiction where the case is filed.
Daniel Siebel, Vice President of the National Student Legal Defense Network, says that despite the more streamlined process, outcomes can still vary depending on the region where the case is filed.
Many inconsistencies can be traced, according to a review by USA TODAY of recent discharge cases, as well as interviews and emails with over ten borrowers, attorneys, and student loan experts. Whether a bankrupt borrower can actually discharge their student loans still depends on the federal attorney assigned to the case and the jurisdiction in which the case is filed. The timeline also varies.
Despite the changes, some say it is too early for the administration to claim success.
Dali Jimenez, a law professor at the University of California, Irvine, and director of the Student Loan Law Initiative:
Source: https://www.aol.com/biden-wants-more-student-debt-100851221.html
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