Open Access. Powered by Scholars. Published by Universities.®
- Discipline
Articles 1 - 2 of 2
Full-Text Articles in Law
Bankruptcy And Education, Keith Sharfman
Bankruptcy And Education, Keith Sharfman
Faculty Publications
(Excerpt)
Bankruptcy law interacts with education law in a number of respects. A bankrupt educational institution loses access to student financial aid, and its accreditation status is excluded from the bankruptcy estate. Actions by accreditation agencies against bankrupt educational institutions are not subject to the automatic stay. And absent a showing of undue hardship, student loans are not dischargeable in bankruptcy.
The exceptional treatment of educational institutions and their students in bankruptcy reflects a fundamental tension between the goals of bankruptcy law on the one hand and education policy on the other. While bankruptcy law generally seeks to maximize value …
Student Loans Can Be Discharged (At Least Partially) In Bankruptcy After All, Carmella Gubbiotti
Student Loans Can Be Discharged (At Least Partially) In Bankruptcy After All, Carmella Gubbiotti
Bankruptcy Research Library
(Excerpt)
Section 523 of the Bankruptcy Code sets forth debts that are not dischargeable. Among the non-dischargeable debts, which a debtor will still owe after they receive a bankruptcy discharge, are debts from educational loans. As such, these student loan debts may prevent many debtors from receiving a truly fresh start following bankruptcy. Courts historically have approached the undue hardship exception to this rule narrowly, applying it only where the debtor, under the circumstances, could not reap the benefit of her education.
This Article will discuss the various tests courts use to determine whether an educational debt is dischargeable. Part …