Judge Wipes Out a Student Loan Tab $220K

[Demovictory9]

https://www.newser.com/story/285409/judge-overturns-myth-wiping-out-a-student-loan-tab.html?utm_source=part&utm_medium=uol&utm_campaign=rss_top

Judge Wipes Out a Student Loan Tab
$220K decision reflects the rethinking of standards for helping borrowers

Kevin J. Rosenberg borrowed about $116,500 between 1993 and 2004 to get him through the University of Arizona, where he earned a history degree, and Cardozo Law School. With interest, that debt grew to $221,400, the Wall Street Journal reports. In 2018, Rosenberg filed Chapter 7 bankruptcy, unable to repay the loans. A bankruptcy judge this week told him not to worry about it. In wiping out Rosenberg's debt, Judge Cecelia G. Morris said that paying back the money would be an undue hardship for the Navy veteran. Educational Credit Management had argued that Rosenberg didn't meet that standard because he has no disability, isn't unemployable, and isn't using his law school education—he hasn't worked much as a lawyer. The company is a nonprofit that handles the government's Federal Family Education Loans. "I'm thankful that I get to recover from a crushing financial blow and have a chance to get up, dust myself off, and keep going," Rosenberg said.

Judges are becoming more willing to help borrowers awash in student debt, per the Journal, and Morris said she was acting to dispel the myth that it's "impossible to discharge student loans." She applied a different standard, the Brunner test, that's based on whether the borrower has tried to repay their loan but can't do that and keep a decent standard of living. The New York judge's ruling doesn't establish a precedent, but reflects the trend of rethinking how to apply bankruptcy standards. "If the district court affirms Chief Morris' order," a bankruptcy lawyer told the Times-Union, "there will be a lot more filers for bankruptcy all over the country." (Read more student loans stories.)

[smirkymonkey]

1. Oh, this gives me hope.

I have been diligently paying my ridiculous student loan (borrowed 50k, grew to 135 k due to forebearances, was never delinquent) I had gone through periods of unemployment and underemployment after 9/11 and could not pay my grad school loans - not what they wanted anyway.

I offered to pay them what I could pay and they would not work with me. There was no compromise with them so the loans just grew out of control. I have now payed them down to about $124k, but it's just insane. I am just paying interest. I hate these motherfuckers with a passion. Who else makes this kind of money? They are just ripping off students. There is no way they should be able to collect on that kind of compounded interest. It's criminal. I have almost wished I would die so I could screw them out of their money.

[LittleGirl]

4. That's just horrible and should be

illegal. I couldn’t agree with you more.
Please, hang on. There’s hope. I wish you had some peace.

[smirkymonkey]

7. Thank you LittleGirl.

It's criminal what they charge for interest. It is such a racket. And people like Betsey DeVos are determined to make it even harder for us. I hate her with a passion.

[LittleGirl]

11. The cruelty is a feature

not a bug. The whole administration is slimy and she is just rich enough to get away with it. She is the wicked witch of student loans.

[Demovictory9]

16. ..

https://www.democraticunderground.com/1017564315

[smirkymonkey]

17. Even though I am not a millennial, I am still far behind where my parents were

at my age. And I don't have a family of four kids. Or any kids. My parents are retired and spending their winters on the beach in Florida and travel during the year. They live quite comfortably. I will be lucky if I can pay this loan off by the time I am 70 and it is preventing me from saving for retirement. I have a little less than $200k socked away in profit sharing and 401K and that isn't nearly enough. Hopefully, if I remain employed that will go up a bit, but still not enough.

But the rich and corporations must have their tax cuts. Fuck the republicans.

[Opel_Justwax]

19. There should be no interest on Federal student loans.

Interest is a trap when you borrow $50K+.

[smirkymonkey]

20. Tell me about it.

I borrowed $50k for grad school. Due to various circumstances, it ballooned to $136k. Insane. I am now down to $124k and pay $800 per month. I can't even tell you how much I hate those greedy motherfuckers. I have tried everything I could to negotiate and pay what I could afford and they refused to accept anything but the absolute maximum. Anything less and they were rolling it up and charging compounded interest.

[delisen]

2. Any primary candidates addressing this?&

[Caliman73]

13. Both Sanders and Warren are proposing ways to eliminate or significantly reduce student debt.

It is a trillion dollar problem and is restraining the economy. Some economists think that by eliminating or reducing the debt, it will inject a huge amount of buying power into the economy.

I know personally that if the student debt my wife and I have were eliminated we would be using that money on needed home repairs, enhancements, and a family vacation we have not taken in years.

[Sherman A1]

3. Good

[crazytown]

5. It's Joe Biden's 2005 Act that made student debt so difficult to discharge.

The obstacle course put in place also helped millions out the door of their homes during the Great Recession.

[Nay]

10. True. People forget this. It's one thing that really puts me off him. nt

[smirkymonkey]

18. Same here. That is my biggest problem with him.

I can't forgive him for that.

[JudyM]

14. I didn't know about that.

[a la izquierda]

6. Excellent.

My debt has ballooned, like everyone else’s. I essentially pay $500/month, nearly two car payments, to the government.

[smirkymonkey]

8. I pay $800 per month and I am barely making a dent in it but that is all I can afford on

my income based repayment plan. It's sickening how people like Donald Trump can get away with bankruptcy for millions yet we are chained to this debt with no hope for relief for our entire lives. It makes me furious. Sometimes I just want to tell them to fuck off.

[Luciferous]

9. Me too and that just pays the interest not the principle. I think if they just eliminated

compounding interest from student loans it would help immensely.

[smirkymonkey]

12. That was the killer.

Makes me so angry I could spit nails. Who else gets that kind of return on investments?

[Opel_Justwax]

15. I prefer a flat 3% tax on all income no matter the source for 40 years

Students aren't buried in debt and the total of all people paying off their loans is settled with the flat income tax. Much Like we do with FICA taxes today. YMMV. IMHO.