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A short And you may Unfortunate Reputation for Student loan DISCHARGEABILITY

A short And you may Unfortunate Reputation for Student loan DISCHARGEABILITY

Ahead of 1976 – Figuratively speaking could be discharged like other unsecured debts and you will borrowing and you can cost had been susceptible to regular industry pushes like most almost every other obligations.

It has got skewed the student loan field greatly and only lenders, causing disastrously negative effects for education loan consumers:

1976 – Government Rules stored one to student loans cannot getting discharged except if they had experienced installment for five ages ahead of the submitting of your own personal bankruptcy; if for example the figuratively speaking was actually for the installment at under 5 years, they might just be released whether it try an “unnecessary hardship” on borrower to settle the loan. Continue reading »

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