Tulsa Student Loan Debt Lawyer
Private Student Loans May Now Be Dischargeable in Bankruptcy
On August 31, 2020 the Tenth Circuit Court issued an opinion in McDaniel v. Navient Solutions, LLC, concluding that not only are private student loans not exempted from the discharge in bankruptcy, but they never were.
If you owe private student loans or know someone that owes private student loans, now may be the time to act.
What Are Private Student Loans?
Private student loans are loans that are not insured by the federal government. Private student loans do not originate with the Department of Education, but instead originate with a bank, credit union, or online lender. Many times, you will see private student loans as the sole source of financing for trade schools and unaccredited schools.
Since 2005, the prevalence of private student loans mushroomed due to the belief that such loans were not dischargeable in bankruptcy. The belief that private loans could not be discharged in bankruptcy led many lenders to extend student loans to individuals that otherwise would not qualify for a non-student loan. Couple the student loans with schools that make misleading promises about employability or schools that simply do not deliver the education and many borrowers were left owing tens of thousands of dollars that they cannot afford to pay.
Private student loan lenders are some of the most ruthless debt collectors that, in many cases, prey upon individuals that cannot afford to pay. The crushing private student loan debt leaves many individuals living with a constant threat of debt collection.
Contact Us to See If You Qualify
If you owe private student loans that you cannot afford to pay, now is the time to consider filing bankruptcy. Contact The Colpitts Law Firm and schedule an appointment to see if bankruptcy will help you shed your private student loan debt.
If you have filed bankruptcy since 2005 and if you have paid on your private student loans, contact The Colpitts Law Firm about recovering those payments. In most cases to recover funds, we will represent you with no out of pocket expense to you.