The full Senate Judiciary Committee will be holding a hearing tomorrow at 10 a.m. EDT titled "Student Loan Bankruptcy Reform." ABI's Commission on Consumer Bankruptcy will be submitting written comments for the committee's consideration as student loans and bankruptcy were the first issue addressed in its Final Report. For more information on the hearing and a link to the live webcast tomorrow, please click here.
To access the Commission's full report, please click here.
To access a summary of the Commission's key findings, please click here.
Ninth Circuit BAP doesn’t require a formal motion to dismiss with prejudice when a debtor files a voluntary motion to dismiss as of right under Section 1307(b).
A former CEO of the student loan lender Sallie Mae says the cost of tuition at U.S. universities is “criminal,” but acknowledges that he played a role in their rising, according to a forthcoming book, The Hill reported. In an adaption of Wall Street Journal reporter Josh Mitchell’s “The Debt Trap,” set to be published on Aug. 3, Al Lord, who joined Sallie Mae in 1981, said that he first felt the impact of tuition costs when he started paying those of one of his grandchildren. Lord said that he paid $175 a semester during the 1960s when he attended Pennsylvania State University, a stark difference to the tuition he paid for his grandson, who enrolled at the University of Miami several years ago. The college currently charges $75,230 for an undergraduate on campus, which includes tuition, fees, housing and meals, transportation and other expenses. He reportedly acknowledges in the book that he understands he played a role in encouraging colleges to increase their rates. According to "The Debt Trap," after Lord started his first run as CEO for Sallie Mae in 1997, he started a series of incentives to allow students to take out more loans so that colleges could charge more. Sallie Mae started bundling packages of student loans that were then sold to investors.
No circuit split: The Second Circuit agrees with the Fifth and Tenth Circuits that only a subset of private student loans is automatically nondischargeable.
Although the arbitrator didn’t explicitly find willful and malicious injury, the nature of a successful claim for sexual discrimination supplied the required findings for nondischargeability.
