Is It Impossible to Discharge Student Loans?

It has been widely reported that student loans cannot by discharged, even by bankruptcy. People believe that the only way to get rid of their student loans is through full repayment or death. However, this "common knowledge" is not entirely true. Although it is very difficult to get student loans discharged through bankruptcy and your particular situation must meet the right criteria, there are people who successfully discharge their student loans through choosing bankruptcy every year.

The first condition a person must meet if they wish to have their student loans discharged after filing for either Chapter 7 or 13 bankruptcy is that they must be able to prove that their student loans cause them "undue hardship." Judges use a three-pronged test commonly known as the Brunner test to establish undue hardship. In order to prove hardship, the applicant must meet all three prongs of the test. They are as follows:

1) the debtor[s] cannot maintain, based on current income and expenses, a 'minimal' standard of living for [themselves and dependents] if forced to repay the loans

2) that additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and

3) that the debtor[s have] made good faith efforts to repay the loans

As you may have guessed by the three prongs of the Brunner test, "undue hardship" clauses are mainly used for people who people who have become permanently disabled and therefore unable to work. However there are other circumstances in which a judge may move to discharge your student loans. For example, a person who will be unable to provide necessities for his or her dependent children would be a good candidate to apply for undue hardship.

However, the difficulty of the undue hardship clause should not necessarily discourage you from trying to discharge your student loans. A recent study published by the American Bankruptcy Law Journal found that 39% of people who went through the process correctly were able to discharge their student loans. This directly contradicts the popular idea that it is impossible to get rid of your student loans.

If you find that your loans are causing you extreme financial hardship, you should consult an attorney experienced with bankruptcy. A bankruptcy attorney will be able to tell you whether or not your case has the potential to meet the three conditions for undue hardship and guide you through the process if it is. 

Criminal Background Checks During College Applications: How a Juvenile Offense Can Bar You from University

Juvenile Offenders are much more common in the United States than many people might guess. In fact, a 2012 study found that almost a third of American adults have been arrested for illegal or delinquent offenses by the age of 23. Although many of these juvenile offenders are able to get their records sealed or otherwise labeled confidential, there are still a plethora of "collateral consequences" that these young people must face as a result of their convictions. Traditionally, the collateral consequences of committing a crime might involve the danger of loosing jobs, public housing, public benefits such as welfare, and voting rights. Now, it has come to the legal community's attention that an increasing number of teenager offenders may be at risk for damaging their chances at college admission and/or federal financial aid. A recent study by the Center for Community Alternatives found that 66.4% of colleges currently collect information on their applicants' criminal records and this information is used in order to determine admissions.

The Common Application, the standard application used by colleges, specifically asks applicants "Have you ever been adjudicated guilty or convicted of a misdemeanor, felony, or other crime?" Other applications ask even more detailed questions, such as "Have you ever been pardoned or had your record expunged in any court? If so, please provide details as to the crime and conviction." Questions such as these pressure applicants, who have legally expunged, sealed, annulled, or confidential records, to disclose information that can be used against them in the admission process.

Another obstacle applicants may face is their eligibility for federal student loans. The Federal Application for Federal Student Aid, commonly known as the FAFSA, specifically excludes any student who was convicted of a drug related crime while receiving federal grants, loans, or work study from receiving federal student aid. A conviction for possession of a controlled substance results in a suspension from federal aid for one year, while a conviction for the sale of a controlled substance will earn students a two year suspension. Hundreds of thousands of students across the country rely on federal aid to attend college so a suspension can have a major impact on whether or not an applicant is achieve a higher education.

If you a young adult with a criminal record, there are several important things you should ask your attorney. The effects a conviction will have on you will be different depending on whether you are already enrolled in college or if you simply want to apply in the future and the status of your record.

You should also be aware of Penal Law § 1.05(6). The penal code states that one of the general purposes of the law is the "rehabilitation of those convicted, the promotion of their successful and productive reentry and reintegration into society." Penal Law § 1.05(6) may be helpful to your attorney in arguing your case, since it is obvious that hindering a teenager from receiving higher education would have an negative and unfair impact on his or her life.

If you are a juvenile accused of a crime, be sure to hire an experienced attorney. This is not a situation where you want to "go it alone." Juvenile offenses can have serious impacts on your future. You can reach my office at 718-317-5007.