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Posted on Thursday, December 3rd, 2009.

Supreme Court to Hear Student Loan Bankruptcy Case

An article posted by Nina Totenberg of NPR follows the story a students’ struggle to pay off his student loan. The Supreme Court has yet to decide the outcome of his case. Here is an excerpt of the article:

“… students enrolled in post-high school classes borrow money to advance their education. The federal government guarantees most student loans to the tune of $618 billion. To prevent people from just walking away from their obligation, federal law makes it hard to discharge a student loan debt (that is, not pay for it). The bankruptcy code allows discharge only in cases of undue hardship, but the code does permit restructuring of a debt to make it repayable.

Enter today’s test case and its protagonist, Francisco Espinosa. In 1988, he was a baggage handler for America West Airlines. He enrolled in a technical school to learn computer drafting and design, but after graduating, he couldn’t find a job.”

Read the entire article on the student loan bankruptcy case.