Student Loan Problem: Statistics & A Failure To Acknowledge Reality

Ignoring reality? (photo by Marilyn Swanson) By: Donald L Swanson We have a student loans problem in these United States. A huge part of the problem is that we are, (i) focused on addressing symptoms of the problem in small ways, (ii) ignoring the underlying problem, and (iii) enabling higher education costs to spiral out of... Continue Reading →

Some Courts Magnify Student Loan Problems By Plugging-Up The Bankruptcy Safety Valve (In re Wolfson)

A safety valve? (Photo by Marilyn Swanson) By: Donald L Swanson Lots of things are wrong with the student loan program in these United States.  For example: It’s a corporate-welfare program for high-price colleges; butTheir students pay the price. Unfortunately, the safety valve protection for students (i.e., a bankruptcy discharge) has failed them—and made the problem... Continue Reading →

Student Loans At US Supreme Court: A New Loss For Students / Win For U.S. Government (McCoy v. U.S.)

Brunner's "certainty of hopelessness" test? (photo by Marilyn Swanson) By: Donald L Swanson “Petition DENIED” That’s the ruling of the U.S. Supreme Court, dated June 21, 2021, in McCoy v. United States (Case No. 20-886). The question in McCoy v. United States focuses on the test for discharging student loans in bankruptcy, under the “undue hardship”... Continue Reading →

The Student Loan Problem — A Solution: Stop Making Bad Loans!

A good intention gone awry (photo by Marilyn Swanson) By: Donald L Swanson It is the lot of good intentions—to go awry. And so it is with the federal government’s student loan program.  Its good intentions are obvious: making a college education available to everyone—even at high-price colleges. Catastrophic Consequences Such good intentions have gone awry, with... Continue Reading →

Student Loans: U.S. Supreme Court Can Overrule A Harsh Rule (McCoy v. U.S.)

Brunner's "certainty of hopelessness" test? (photo by Marilyn Swanson) By: Donald L Swanson One of the human tragedies of our time is this legal opinion: Brunner v. New York State Higher Education Services Corp., 831 F.2d 395 (2d Cir. 1987). Brunner creates a three-part test for discharging student loans in bankruptcy, under the “undue hardship” standard... Continue Reading →

The Crazy-Season for Student Loans is Nearly Here . . . Again!

By Donald L. Swanson The crazy-season is when millions of people incur easily-obtained student loans they can’t afford, for another semester of college.  That time is nearly here, again, as a new school semester begins after the turn of the year. An even-crazier part is this: the U.S. Government guarantees payment of those unaffordable loans—which is... Continue Reading →

Student Loan Crisis: High-Price Colleges Support Beautiful Campuses (and Other Luxuries) on the Backs of their Students

By:  Donald L. Swanson “Back when I was in school . . .” This is a tired-old phrase, usually followed by tales of hardship. The Olden Days But here’s an opposite twist: Back when I was in college (during the 1970s), you could actually pay your way through, with little-to-no debt, by working part-time jobs... Continue Reading →

Corporate Welfare for High-Price Colleges Creates Long-Term Servitude for Students

By: Donald L. Swanson “the borrower is servant to the lender” Proverbs 22:7 (KJV). The long-term drag of student loans on the lives of many college graduates is a horrible thing. And discussions about relieving that problem are important. But long-term effects on students are a mere symptom of the problem. The underlying problem is this:... Continue Reading →

Congress Decided to Punish Consumer Debtors and Failed Entrepreneurs in BAPCPA — This is Terrible Policy!

By: Donald L. Swanson U.S. politicians love to talk about helping poor people—unless, that is, the poor owe money that can’t be repaid. U.S. politicians also love to talk about helping small businesses and entrepreneurs—unless, that is, the small business or entrepreneur owes money that can’t be repaid. When uncollectible debts are involved, politicians turn surly... Continue Reading →

Sometimes Good Things CAN Happen in Bankruptcy for Student Loan Debts

By: Donald L Swanson Every now and then a good thing happens in bankruptcy. It’s not very often—but good things do happen. Here’s a story of one of those good things [Fn. 1]. Our Hero (the bankruptcy Debtor) is a 54 year old, single mother of two college-aged children. She is a self-employed professional in a... Continue Reading →

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