Commentators on the sad state of unemployed and underemployed JDs with six-figure student loan debt may be unduly pessimistic. They continue to cite the reality that Congress enacted the law in 1976 and then strengthened it in 1990 and 1998 that prevented the student loan debt to be eliminated in a bankruptcy filing.
However, research shows, reports THE NEW YORK TIMES, that those who go to court pleading "undue hardship" ofen can get rid of their student debt. That's even possible if they represent themselves, that is go pro se. So, no, starving JDs, you don't even need a lawyer to attempt this Hail Mary pass. And, a Hail Mary pass it is since judges struggle with how to define "undue hardship." In addition, even if you win your case, both federal and private lenders will probably appeal.
But, it's worth a try. For example, unlike the grim statistics provided by the Educational Credit Management Corporation about winners in the process, recent numbers from other sources tell a different story. As THE NEW YORK TIMES points out, academic researchers Rafael Pardo and Michelle Lacey found that of 115 filings 57% got some or all the student loan debt tossed. Another researcher Jason Iuliano found of 207 cases from around the nation 39% also got some or all the debt killed. In addition, Iuliano noted that the outcome was not dependent on the use of a lawyer versus pro se representation.
The lesson here is the same lesson that applies to hunting for work in a changing economy: Don't listen to the experts. Do your own research and thinking. Then experiment.
I think that this student loan debt crisis will be responsible for next financial crisis. Student loan delinquency is increasing day by day. I think that government should provide proper student loan counseling to students as well as parents.
Posted by: payday loans | February 04, 2013 at 08:42 AM
Student loan is in problem of debt nowadays. Government should make some good policies to control the education loan delinquencies. Most of the students are facing debt problem. There must be some good and strict rules and regulation on student loan disbursement.
Posted by: cash loans | January 21, 2013 at 08:49 AM
Student loan delinquency is really becoming a big financial problem for global finance market. Most of the students are facing this student loan debt problem. There must be some good and strict rules and regulation on student loan disbursement.
Posted by: payday loans | January 14, 2013 at 08:23 AM
I need to become smarter about the smartphone. That will set me back $25 but fortunately I won't need to apply for a student loan.
Posted by: paydayloan | December 07, 2012 at 12:50 AM