The Chronicle: Colloquy: Responses

COLLOQUY
THE QUESTION
RESPONSES
BACKGROUND

Should Congress make it impossible for borrowers with student loans to discharge their debts by declaring bankruptcy?

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"To begin with, there are not that many people filing for bankruptcy due to guaranteed educational loans. It's just a fallacy. Also..."

: -- bryan, merritt (posted 2/12, 4:45 p.m., U.S. Eastern time)

"As a practicing bankruptcy attorney, I wanted to add my voice of the on-line dialogue regarding dischargeability of student loans..."

: -- William C. Sias, Law Office of William C. Sias (posted 7/9, 11:23 a.m., E.D.T.)

"It amazes me to see that so many Americans prefer to blame people rather than to see flaws in the greater system..."

: -- Anonymous (posted 7/9, 11 a.m., E.D.T.)

"When I was taking loans to pay for my grad. education, a fellow grad student boasted that he was putting his loan money into CD funds. He claimed to be..."

: -- We Waisala, Ramapo College of Nj (posted 7/2, 11:25 a.m., E.D.T.)

"OK, folks. The most often cited argument against the change seems to be abuse by just graduating students..."

: -- Renee Levant, Penn State University (posted 6/22, 10:50 a.m., E.D.T.)

"The 7 year period starts when repayment starts, not when the student ceases their education..."

: -- Shaun G. Jamison, Attorney (posted 6/19, 1:15 p.m., E.D.T.)

"Allow Congress to discharge student loans which are obsolete (over 20 years old) or for those students who..."

: -- Wendy Perkins, Temp Professor-Arizona/Worldwide (posted 6/3, 10:09 a.m., E.D.T.)

"I have been dealing with educational loans for over 17 years and have seen bankruptcy used as a tool to eliminate educational loan debt immediately after leaving school. I firmly believe..."

: -- Sharon Van Sickle, Collection Manager, Northern Arizona University (posted 5/28, 2:47 p.m., E.D.T.)

"In my over 21 years of service to Northern Arizona loan collections, I believe that student loans should not be dischargeable for any reason other than "undue hardship" which must be..."

: -- William H. Hall, Assoc. Mgr., Northern Arizona University, Student Business Services (posted 5/28, 2:45 p.m., E.D.T.)

"My undergraduate focus in critical theory leaves me with a bit of hermeneutic suspicion since those of you who defend the current 7-year rule in this colloquy are also the same ones with jobs dependent on..."

: -- Dan Johnston, Director, Counseling & Consulting Associates, Minneapolis (posted 5/28, 8:24 a.m., E.D.T.)

"During my 21 years of student collections, I have seldom seen a bankruptcy by a former student that could not have been avoided by more prudent budgeting..."

: -- James H. Fariss, Director, Accounts Receivable Management Services (Delinquent Collections), Indiana University (posted 5/27, 4:01 p.m., E.D.T.)

"I see no way to pay off my student loans on my advanced degree. I had no trouble paying off an earlier degree but economic circumstances have changed. The advanced degree I obtained simply doesn't have enough market value in today's economy even if..."

: -- Patricia Julien, unemployed (posted 5/27, 3:59 p.m., E.D.T.)

"As the bankruptcy law currently stands there is little opportunity for abuse. However..."

: -- Tom Kirk, Revenue Agent, Western Oregon University (posted 5/21, 11:32 a.m., E.D.T.)

"In general, it appears that financial aid professionals are against students being able to declare bankruptcy on their student loans. Most of these professionals seem to indicate some moral weakness in..."

: -- Todd Myers, President, Asoka Institute for Peace Studies (posted 5/20, 11:05 a.m., E.D.T.)

"Sorry for this anonymous message, but I am a student on the market and I am not taking any chances. I agree with Toni Levi. Once again, this debate reeks of hypocrisy and self-righteousness on the part of..."

: -- anonymous, graduate assistant, The University of Iowa (posted 5/20, 10:56 a.m., E.D.T.)

"While I would concur with the fresh start concept of the bankruptcy law, I think there is difference with respect to..."

: -- John Brown, Credit Manager at Boston College (posted 5/20, 10:55 a.m., E.D.T.)

"We are very much opposed to any change in the law which would allow students to discharge their debt any earlier than 7 years after beginning repayment. For the Perkins Loan Fund, relaxing this provision would..."

: -- Loraine Hofer, Student Accounts Supervisor, Warner Pacific College (posted 5/20, 10:52 a.m., E.D.T.)

"When National Defense and National Direct Loans were still dischargeable through bankruptcy, OSU had several cases where Law graduates and Dental school graduates declared bankruptcy immediately after..."

: -- Suzan Bird-Conliff, Coordinator Financial Collections, The Ohio State University (posted 5/19, 10:34 a.m., E.D.T.)

"One of the main reasons bankruptcy may look good to some students is the high cost of tuition. This is something colleges could work to address, both in..."

: -- Toni Levi, freelance writer (posted 5/19, 10:30 a.m., E.D.T.)

"It would be a terrible disservice to the financial aid programs, the American taxpayer, and all students who repay their educational loans if Congress now allowed..."

: -- Roberta Wallstrom, University Collection Mgr. CSU Fullerton (posted 5/19, 10:28 p.m., E.D.T.)

"In my 20 years of student loan collections, I have found that most borrowers find a way to meet their loan obligations within 7 years of repayment. If they are truly unable..."

: -- Jan Wright, Collection Rep., University of California, Davis (posted 5/19, 10:25 a.m., E.D.T.)

"The student loan obligation is unique due to the fact that unlike other debt obligations (house, car, etc.), the borrower who has..."

: -- Patrick Piper, Administrative Services Coordinator, University of Florida (posted 5/19, 10:23 a.m., E.D.T.)

"The information I saw from the National Bankruptcy Commission that was recommending the elimination of the education exception to the bankruptcy law is flawed. The commission was basing their recommendation on..."

: -- Elaine Mozena, University Collection Officer California Stateu University, Northridge (posted 5/19, 10:20 a.m., E.D.T.)

"I find students following their parents example of filing bankruptcy. Some students tell their friends..."

: -- Judy Renschler, Perkins Loan Coordinator/Butler Univ (posted 5/19, 10:18 a.m., E.D.T.)

"Although this is a tough issue, I do agree that student loan debt should not be discharged within 7 years after having..."

: -- Robert T. Lawson, Jr., Assistant Director of Student Financial Aid, Texas A&M University (posted 5/18, 4:45 p.m., E.D.T.)

"I do not agree with allowing borrowers to discharge student loans through bankruptcy. Numerous options are available to student borrowers who cannot make..."

: -- Marlene Lamb, Student Loan Assistant, DePauw University (posted 5/18, 4:42 p.m., E.D.T.)

"The answer to the question whether current bankruptcy law should be changed is an emphatic no. While I appreciate the position of those who are sympathetic to the position of students who might experience financial exigency, their sympathy is..."

: -- Curtis Johnson, Vice President, Access Group, Inc. (posted 5/18, 1:36 p.m., E.D.T.)

"The issue of bankruptcy filing by student loan holders has been discussed numerous times. Each of us in the financial aid field can provide anecdotal instances of gross abuse of the student loan system by particular students. These same students later appear on..."

: -- P R Vick, Director of Financial Aid, Louisiana Tech University (posted 5/18, 11:45 a.m., E.D.T.)