Phone Call Us 414-326-9231
Toll Free 866-678-9352
Text Us 414-277-7742

Bankruptcy case looks at issue of discharge for private high school education, P.1

We have previously looking on this blog at the requirements for student loan debt to be discharged in bankruptcy. As we noted, it is very difficult for a debtor to meet the requirements for discharge, and it is generally the case that most debtors will not be able to discharge these student loan debt.

Student loan debt is not always associated with post-secondary education. Though it doesn't happen very often, in some cases, parents take out student loans to send a child to a prestigious private high school. Can such loans be discharged in bankruptcy? An ongoing bankruptcy case in Connecticut raises this question.

The situation in the case is that a father took out student loans through Sallie Mae for a child's private high school education and had the loan debt discharged in a bankruptcy case he filed for several years later. A new lender who had acquired the debt, however, continued to attempt to collect on the debt after the discharge, prompting the father to sue for violation of the Fair Debt Collection Practices Act. 

Experts in bankruptcy law say that the bankruptcy code isn't entirely clear whether student loans used for K-12 education qualify for discharge. The undue hardship requirement, which makes it very difficult to discharge student loan debt, applies to loans incurred for education benefit and be originated or guaranteed by the government or for a qualified education loan--for higher education. In this case, the lender is arguing for another category to which the requirement applies.

In our next post, we'll continue looking at this case and what the possible outcome might be. 

No Comments

Leave a comment
Comment Information

Contact Our Milwaukee Law Firm

Reach Miller & Miller Law, LLC, online or call us at 414-326-9231 to schedule a free initial consultation. Our law office also provides Spanish language services. Se habla español.

To schedule an initial consultation, call 414-326-9231 or contact Miller & Miller today.

Free Case Evaluation

* indicates required field

Milwaukee Office
633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Law Office Map

Kenosha Office
6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Law Office Map

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Law Office Map

Madison Office
2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Law Office Map

Glendale Office
6001 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Law Office Map