Tag Archives: StudentLoans

Under the Mattress: History Says Millennials Saving Money is Possible

Many would argue that millennials have it worse than anyone. Struggling with student debt, unable to really get into the workforce, and generally too poor to afford to buy a house makes it seem like there is little hope for millennials saving money. However, if economic history means anything, perhaps they shouldn’t be so worried about their future after all. Stanford University economist Orazio Attanasio may have proven the stereotype against millennials wrong 20 years ago. In 1994, he conducted a study to measure how different age groups saved money. Some of his findings seem to show that millennials do not in fact have it harder than the rest. Can Millennials Save Money? Attanasio’s research found that most people, regardless of what generation they fall under, have a difficult time making it month to month in the early parts of their lives. Through his research we can see that the…
Read More »

Posted in Student Loan Debt | Tagged | Leave a comment

When Can Student Loan Debt Be Discharged in Bankruptcy?

So many Americans are struggling with student loan debt nowadays. I was tempted to write “young Americans” but that just isn’t true. People of all ages are struggling, because student loan debt is practically a 25 years to life sentence. Unfortunately, no matter how much student loan debt resembles a plague, most people will not be able to get their student loan debt discharged in Chapter 7 bankruptcy. In order to do so, you would have to prove undue hardship, which has proven to be extremely difficult. Student Loan Debt and Undue Hardship In order to determine whether or not you qualify for undue hardship, most bankruptcy courts will use the Brunner test. To pass this test, you will have to meet all of the following requirements: Poverty – The first step is to show that you do not have enough income to continue making payments on your student loan…
Read More »

Posted in Student Loan Debt | Tagged | Leave a comment

Both Sides Agree: Student Loans Need to Be Dischargeable in Bankruptcy

It is not often, especially with the political polarization happening in the United States right now, for commentators on both sides of the political aisle to come together in support of the same idea, but in late February, two articles were published calling for student loan reform. One author was a conservative, the other liberal, but both agreed: student loan debt should be dischargeable in bankruptcy. If there is widespread agreement on the issue of bankruptcy and student loans, why hasn’t anything been done? Put succinctly, lobbyists. A few decades ago, lenders brought about arguments stating that students were fleeing en masse to bankruptcy upon graduation, essentially getting a free degree and pinning the bill on others. The argument makes sense, but did not reflect reality; prior to Congress eliminating the opportunity for student loan discharge, less than 1 percent of student loans were discharged in bankruptcy. At first, only…
Read More »

Posted in Bankruptcy | Tagged | Leave a comment