Education loan programs had been initially meant as an application of final measure for university students trying to fund their training, and only the absolute most students that are needy for the loan.
9 Roger Roots, the learning student Loan Debt Crisis: A Lesson in Unintended Consequences, 29 Sw. U. L. Rev. 501, 504 (2000). The reason surrounding the development of the student that is first programs, round the time of Lyndon Johnson’s “war on poverty, ” ended up being to lessen monetary barriers and overcome the equalities of possibility among prospective university enrollees. 10 Id. At 505. The end result was w 11 Id. The Indentured Generation: Bankruptcy and Student Loan Debt, 53 Santa Clara L. Rev among other expansions of student financial a 12 Daniel A. Austin. 329, 330–31 (2013).
Round the time that is same had been expanding the education loan system, Congress additionally started the process of closing the chance to discharge education loan financial obligation through bankruptcy as a result of worries of bankruptcy punishment by pupil debtors. 13 Roots, supra note 9, at 512. Ahead of the present Bankruptcy Code, student education loans weren’t addressed differently from any kind of dischargeable financial obligation. Continue reading