A win in the court for one man could take the yoke off the back students
Today, the federal student loan bill stands at $1.2 trillion; this is indeed no small amount of money.
Outside of mortgages, it represents the second largest source of consumer debt in the U.S. This figure is also projected to double over the next decade.
In light of market conditions, one could easily conclude that the current arrangement is unsustainable.
The fact is over 7.5 million students are behind in their student loan repayment. Moreover, the jobs and the income are just not there to support students meeting their debt obligation after graduation.
The truth is the ballooning cost in education is threatening to make education a commodity for only the bourgeoisie.
Currently, even state public university education is becoming unaffordable for a large sector of the population.
Natalie Kitroeff, in an article on bloomberg.com, cited the case of a 65-year -old unemployed man whose student loan debt ratchet up to $246,500 after interest accrual.
The man, seeking relief from this huge debt through the bankruptcy court, discovered that there are federal rules that make it next to impossible for borrowers to get rid of student loans.
So, whereas companies and other consumer debts can be dispensed with via the bankruptcy route, not so, student loans.
Why? Lawmakers have added new rules to the law that excluded most student debt from that relief.
Kitroeff noted that anyone seeking to discharge student debt in bankruptcy must prove that repaying it would constitute an “undue hardship.”
The good thing, if there is any, Lawmakers had never defined an undue hardship; therefore, any lenient interpretation in the case in question from the Boston federal court could have far reaching implications for the way in which U.S. bankruptcy courts treat with borrowers who can’t afford to repay college loans.
Some people have argued that this case may very well be appealed to the Supreme Court and if it does without any positive outcome for the plaintiff, at least it would have brought to the fore the grave conditions and financial plight of students.
Yvad Billings, Readers Bureau, Fellow
Do you want to add feedback to this story? Please add comment in box below.
Like our Facebook page https://www.facebook.com/TheReadersBureau
Follow us on Twitter https://twitter.com/readersbureau21