Using a unique dataset of private student loan originations, we test those predictions using ordinary least squares regression, Blinder-Oaxaca, matching, and difference-in-difference methods. We find that both opponents and proponents of bankruptcy reform were wrong about the effect of that reform. ...
RITTER (2015): "Do Student Loan Borrowers Opportunistically Default? Evi- dence from Bankruptcy Reform," Federal Reserve Bank of Philadelphia Working Papers, 15(17).Darolia, Rajeev and Dubravka Ritter. 2015. "Do Student Loan Borrowers Opportunistically Default? Evidence from Bankruptcy Reform." FRB...
The Bankruptcy Reform Act specifically prohibits discharge of educational loans. This statutory exception is discussed and information is provided for lawyers handling loan collection. The anomalous situation created by the chapter that does not specifically discharge educational debt is also described. (MSE...
On July 30, 2021, legislation was introduced in Congress that would view private student loan debt through the same lens as other private debt during a bankruptcy proceeding. If passed, the Private Student Loan Bankruptcy Fairness Act could limit the financial fallout of a private student loan wh...
We do not know of any specific estimates of the impacts of student loan delinquency and default on future access to credit. Musto (2004) estimates a negative effect of personal bankruptcy on credit scores and access to new credit; however, these findings cannot be directly extrapolated to studen...
The Justice Department released new guidance that may make it easier for some borrowers to discharge their student loans in bankruptcy. The Biden administration will be implementing the new IDR Account Adjustment initiative by the summer of 2023. Millions of borrowers may be able to advance their ...
Unfortunately, these reforms have done little to stem the tide of rising student loan debt, most of which is not dischargeable in bankruptcy. This Article examines how the student debt crisis showcases the newest front in the battle for access to higher education. It outlines the rapid ...
New Legislation Introduced to Forgive Private Student Loans upon Bankruptcy Habits for Financial Success What Expenditures Could You Put Off in Order to Pay Down Your Loan? Fixed Rates vs. Variable Rates: A Beginner’s Course Become Debt Free in Five Years ...
(MoneyWatch) It's well known by now that student debt is hard to shake. In the good old days, personal bankruptcy could allow someone to escape a loan burden. Today, thanks to the Bankruptcy Reform Act of 2005, corporations are allowed to restructure their debt, but individuals not so mu...
Under the 2005 bankruptcy reforms, it is next to impossible to discharge student loan debt in bankruptcy. If students ask private lenders for a forbearance for hardship, the interest continues to compound, adding to an even more unmanageable problem in the future. When students default on private...