judge stripped a veteran's $221,000 in student-loan forgiveness, and it shows how hard the law makes

[Demovictory9]

judge stripped a veteran's $221,000 in student-loan forgiveness, and it shows how hard the law makes it to get rid of student debt



US Bankruptcy Court Judge Cecelia Morris forgave Rosenberg's loans through bankruptcy last year using the Brunner test - a legal test created in 1987 that requires borrowers to show "undue hardship" caused by their student debt. The test defines that hardship as meaning they cannot maintain a minimal standard of living, their circumstances will likely not improve, and they have made a good-faith effort in repaying their debt.

Morris wrote in her ruling that Rosenberg satisfied the legal test. She added that she wouldn't perpetuate "myths" that it's impossible to discharge student debt through bankruptcy.

But federal New York Judge Philip Halpern may have proved that the issue isn't so mythical after all. Shortly after Morris' ruling, the Educational Credit Management Corporation - the company that owned Rosenberg's student debt - challenged the ruling under the argument that while Rosenberg took out debt to practice law, he pursued jobs in the "outdoor adventure industry." The company also criticized Morris' interpretation of the Brunner test.

"Inability to pay one's debts by itself cannot be sufficient to establish an undue hardship; otherwise all bankruptcy litigants would have an undue hardship," ECMC wrote in its appeal.

Halpern sided with the student-loan company and revoked Rosenberg's loan forgiveness last month because he did not prove that his loans from college and law school created "undue hardship." Halpern said Rosenberg must go back to bankruptcy court and reevaluate the case.

[underpants]

1. Ugh

I’m still waiting on word about my forgiveness (public service) it’s been just over a month. I’m not expecting it to be approved. I may have to pay for another year or so. Payments have been frozen since early last year AND we still get credit for consecutive payments during that time.

[Demovictory9]

2. sending you good forgiveness vibes.

[underpants]

3. Thanks.

I’ll let you know.

[SheltieLover]

4. Best of luck to you!

Fingers crossed! 🤞🤞🤞

[Xolodno]

5. Here's the thing...

...while in college (a state college no less), it was promoted that if you went into public service (since it paid less than corporate) for so long, your loans would be forgiven. Oh and they encouraged the loans with mis-truths, so long as you paid something towards it, you would be in good standing...and of course, there was always bankruptcy.

Then Newt Gingrich happened.

You would think if you got your loans prior to the new laws, you would be grandfathered in. Nope. It was made retroactive.

And since banks were given payment enforcement that even mafia's and loan sharks would be jealous of, they loaned without any worry of repercussions. Add constant cuts to higher education which creates higher tuition...and boom. You're screwed for life.

[Ziggysmom]

6. That federal New York Judge Philip Halpern was a TFG nominee, of course!