Friday, February 5, 2016

The History of Student Loans in Bankruptcy

In a fairly short amount of time student loans have gone from completely dischargeable in bankruptcy to dischargeable only after 7 years, to non dischargeable except in extreme circumstances of continuing undue hardship. During this same time period the cost of a higher education has outpaced inflation by 2.5 times. Why is the cost of education going up so much faster than everything else? Why are student loans basically non dischargeable today despite students being buried in their debt? These are questions that I look at in this article. A future article will discuss hardship dischargeability.

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