President Barack Obama blocked a bankruptcy court from erasing student loan because the administration thinks it would jeopardize the loan program’s stability.
Robert Murphy of Massachusetts, 65, is buried in student debt and filed a motion with the court in an attempt to be absolved of his student loans. However, attorneys said the unemployed and elderly Murphy can easily go back to work or win the lottery. Student loan borrowers face horrendous obstacles is they seek out bankruptcy relief.
Borrowers must prove that they face “certainty of hopelessness” and have a “total incapacity” to pay the loans back. In short, you have to be dead before the government considers you unable to pay the loans back. But, it will offer a multi-billion dollar bailout to Wall Street firms that cripple the economy.
“An individual’s economic circumstances may change over time,” attorneys said. “Improvements in the national economy may offer new employment prospects, changes in family circumstances may reduce the number of the debtor’s dependents, a spouse may enter or reenter the workforce, or the debtor may benefit from an inheritance or other windfall.”
This blanket statement is indicative of the student loan hustle operated by the United States government. The government will give great deals to banks, but the average American is stuck.
For more on this story, visit UPI “Obama administration urges no bankruptcy relief for student debt”