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A lawsuit has been filed to challenge common banking industry policies that make it difficult for undocumented students to finance higher education, the New York Times reported today. The case was filed in San Francisco federal court, with the California League of United Latin American Citizens participating as a plaintiff. Most student borrowers rely on loans backed by the federal government, but undocumented students are not eligible for federal loans. Those wishing to borrow must turn to private loans, which generally carry fewer protections — and, often, higher rates — than federal loans. No laws prohibit lenders from making loans to undocumented borrowers who possess identifying information like a Social Security number. Still, this is an area where banks tread very lightly. Among five of the nation’s largest issuers of private student loans, two — Discover Bank and Sallie Mae — said that they made loans to undocumented students under some circumstances.

About 450 clergy abuse victims, plus several hundred other creditors of the Archdiocese of St. Paul and Minneapolis, Minn., soon will be able to vote on competing compensation plans presented in bankruptcy court, the Minneapolis Star Tribune reported today. Bankruptcy Judge Robert Kressel yesterday approved a timeline for sending out the ballots — within about 30 days — and a 40-day response time. Creditors can vote for one of two competing plans or none at all. Judge Kressel also denied a motion that would have allowed the survivors’ committee to sue more than 100 parishes, schools and other Catholic institutions that received several million dollars in transfer payments from the archdiocese in the 90 days before it filed for bankruptcy.

Nearly three years since filing for bankruptcy in response to a flood of sexual-abuse claims, the Roman Catholic Diocese of Stockton, Calif., is hoping to close the book on what Bishop Stephen Blaire has described as a “very difficult chapter,” the Union Democrat reported today. Bankruptcy Judge Christopher M. Klein approved Blaire’s reorganization plan for the diocese on Tuesday, according to a written statement. The diocese filed for bankruptcy on Jan. 15, 2014, after paying out more than $15 million to settle nearly two dozen sex-abuse claims over a 20-year period. Under the plan, the diocese has agreed to pay $15 million to survivors of sexual abuse by clergy. Part of the plan also involves making “non-monetary” commitments to the survivors that the diocese described as “important aspects of any healing process.” Other details of the plan include setting up a trust fund exclusively for the benefit of survivors, paying at least 50 percent of what the diocese owed to general unsecured creditors, restructuring secured loans, and settling with insurance carriers.