These types of limits was basically tightened even more on ensuing many years

Up to 1976, whenever an alternate personal bankruptcy laws is actually introduced, student loans you are going to, like any forms of personal debt, become released during the bankruptcy proceeding procedures. When this occurs, education loan programs weren’t yet 20 years old and you can beginner financing obligations had not yet reached this new stratospheric proportions you to definitely outlined they in the 21st century.

One to year, mainly baseless states you to definitely scholar debtors were mistreating brand new personal bankruptcy program triggered the initial restrictions towards the personal bankruptcy launch of education loan obligations.Read More