The Supreme Court Nixed President Biden’s Student Loan Forgiveness… Now What?

Late last month (June, 2023), the United States Supreme Court struck down President Biden’s student loan forgiveness plan. Agree with it or not, it happened.

So what’s next for student loans?

Many authorities have again discussed bankruptcy as the best route for student loan forgiveness. Bankruptcy is a set of laws designed to eliminate most debts. A few types of debt are unable to be eliminated in bankruptcy (See 11 USC 523: Exceptions to Discharge). Currently, student loans are a type of debt that is unable to be eliminated in bankruptcy because of the language found in 11 USC 523(a)(8). This is a simple clause in the bankruptcy laws that, if changed or eliminated, would not undermine the remainder of the bankruptcy code. Therefore, student loans are just a simple law-change away from being forgiven in bankruptcy, just like other unsecured loans, and credit card debts, and medical debts, etc. Bankruptcy is the correct forum to eliminate student loans, and here’s why:

1.      The bankruptcy system is already in place

2.      The system has been vetted millions of times by Debtors over the past decades (i.e. the kinks in the system have been found and litigated and resolved, (for the most part))

3.      The Judges have already been appointed

4.      The courtrooms already exist

5.      The case law has already been established

6.      The attorneys are already practicing this area of law

7.      The standards to file have already been tested millions of times

Why reinvent the wheel? Why spend millions of additional dollars creating a new system to handle student loans, when the bankruptcy system already exists, and has been tested millions of times? I have yet to hear a valid response to these questions (admittedly rhetorical).

Regardless of the fate of student loans, your other debts are able to be eliminated right now. Don’t wait another day/week/month/year to contact a bankryuptcy attorney to develop a plan to eliminate your debts and earn a fresh start. Contact me @ 740-815-1114 (call/text) and LucasRuffingLaw@gmail.com to schedule your FREE phone consultation.

Thanks for Reading,

Lucas Ruffing
Attorney
740-815-1114 (call/text)
LucasRuffingLaw@gmail.com