An article by Ayelet Sheffey’s focuses on a bankruptcy debtor, and a Navy veteran who accumulated debts from student loans of over $200,000 on his way to securing a law degree. The bankruptcy court judge, Cecilia Morris, ruled that the debtor showed the required “undue hardship” to allow a discharge of the student loans.
The challenge by the lender, set aside the lower court’s ruling. The judge found that Kevin Rosenberg, a Navy veteran, didn’t show the debt to demonstrate the required “undue hardship,” and the “inability to pay one’s debts by itself cannot be sufficient to establish an undue hardship.”
There is significant momentum by many members in Congress for legislation to permit for a more lenient policy for the forgiveness of student loans. Because “undue hardship” isn’t well defined in the legal test from 1989 such test cases as Kevin Rosenberg’s bankruptcy will likely continue until the issue is more fully addressed by either the United States Congress or the courts.