Preston Mueller, Comment, New Non-Dischargeability out-of Individual College loans: A growing Overall economy?

V. Conclusion

Private student education loans which are not made use of solely to fund the expense of knowledge are considered standard consumer debt on the Fifth and 10th Circuits, in the place of protected otherwise federally-recognized loans. Making it possible for individual figuratively speaking becoming discharged means that brand new borrower receives a brand new start to be a more productive person in society. On top of that, release guarantees fair and you will uniform application of case of bankruptcy law. In the long run, yet not every private college loans is actually dischargeable, the experience for college students to discharge individual student education loans perhaps not utilized solely to pay for the expense of knowledge will get encourage universities so you can avoid raising the cost of tuition. All the jurisdictions is always to incorporate formula and you may laws and regulations from law one help on the scholar personal debt crisis, and also the initial step would be to let the discharge of individual student education loans maybe not used simply for the expense of studies. Continue Reading