This Court Case Could Unshackle Americans From Student Debt [View all]

[uawchild]

Source: BloombergBusiness

When Robert Murphy said he wanted to try to get his student loan debt erased, the person overseeing his bankruptcy case told him he had a better shot of getting hit by a bus. Now he’s closer than ever to victory.

The unemployed 65-year-old, acting as his own attorney, spent three years appealing his way to the Boston federal court that is now considering his case. A win for Murphy would relieve him of hundreds of thousands of dollars in student debt—and could fundamentally change the way U.S. bankruptcy courts handle borrowers who can't repay college loans.

At the center of Murphy’s battle are federal rules that make it nearly impossible for borrowers to get rid of student loans. Most consumer debt goes away in bankruptcy, which was designed to give Americans and companies a fresh start. But in the 1970s, Congress added new rules to the law that excluded most student debt from that relief.

Read more: http://www.bloomberg.com/news/articles/2015-10-08/this-court-case-could-unshackle-americans-from-student-debt

---

"Student loans", with no risk to the lenders, have become a new debt peonage scam. As well intentioned the idea might have been in the 1970's to encourage more lending for education, the current economic climate makes paying back theses loans extremely difficult for today's students. Being $90,000.00 in debt with a college degree and only having a minimum wage job has become common place.
The loans have become predatory since the lenders know the recipients can't seek relief thru normal personal bankruptcy.