[Oasfaa] Despite Bankruptcy Filing, Teacher Is Ordered to Repay Student-Loan Debt

[DanGHolt at aol.com]

THOUGHT YOU ALL MAY FIND THIS INTERESTING!


 This article from The Chronicle of Higher Education
 (http://chronicle.com) was forwarded to you from:
 vperschbacher at stc.seark.tec.ar.us
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   Monday, July 9, 2001



   Despite Bankruptcy Filing, Teacher Is Ordered to Repay
   Student-Loan Debt

   By GOLDIE BLUMENSTYK



   A federal appellate panel in Missouri has upheld a ruling that
   requires a Missouri schoolteacher to repay her student-loan
   debt of nearly $19,000, despite her filing for bankruptcy
   under Chapter 7.

   The panel, a United States Bankruptcy Appellate Panel, said in
   the opinion it issued on Friday that making the monthly loan
   payments of $168.89 over 15 years would not pose an undue
   hardship on the woman, whose gross annual salary was $27,730
   at the time of the trial, in October 2000.

   The ruling comes just as Congress prepares to pass a bill that
   would limit options for students who borrow too much.
   Supported by President Bush, the Bankruptcy Reform Act would
   make it more difficult to declare personal bankruptcy.
   According to recent studies, students are graduating from
   college with nearly twice as much debt as a decade ago.

   In affirming the ruling of a bankruptcy court, the panel noted
   that there was nothing raised in the appeal that had not been
   previously considered by that lower court. The bankruptcy
   court had previously recognized that the woman was likely to
   go into greater debt while pursing a master's degree required
   of her to keep teaching, but that her financial prospects were
   likely to improve after receiving the degree because she would
   qualify for a $3,000 annual raise.

   The court's decision can be found online (requires Adobe
   Acrobat Reader, available free).

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