Such limits were fasten even more regarding the resulting years
Up until 1976, whenever an alternative bankruptcy legislation are enacted, figuratively speaking could, like any forms of financial obligation, end up being released in personal bankruptcy legal proceeding. At that time, student loan software just weren’t but really two decades old and you can pupil mortgage personal debt hadn’t yet , reached the fresh new stratospheric dimensions that outlined it from the 21st century.
One 12 months, mostly baseless states one to college student debtors had been abusing the latest bankruptcy program led to the original limitations to the personal bankruptcy launch of student loan financial obligation. (suite…)