Some of the new student loan refinancing startups, such as Earnest, will
actually discharge your debt with them if you die or are permanently disabled.
Not exact matches
It's a claim on free cash flows that can
actually be delivered to shareholders after all other claims have been
discharged, such as
debt service and investment to replace depreciation and provide for growth.
What bankruptcy
actually does is it improves your credit rating because it puts a stop date on collections and it typically says once you're
discharged from bankruptcy those
debts are
discharged.
Your bankruptcy ends when you receive a
discharge, the event that
actually cancels your
debts.
But because a negotiated
debt settlement plan does not provide a
discharge of indebtedness, it could
actually be more difficult to obtain credit after attempting or completing a negotiated
debt settlement plan.
Even after the Department of Education encouraged students to apply for a
debt discharge, only a fraction
actually received one, Warren wrote in a letter to former Education Secretary John B. King.
But I've written a number of articles about how it is
actually possible and people have
discharged their private and federal student loan
debt.
The section of law mentioned, 15 U.S. Code § 1692e — False or misleading representations does seem to apply if the
debt collector is
actually stating unequivocally student loan
debt can't be
discharged in bankruptcy.
«The premises of the Gainful Employment Rule and the Borrower Defense to Repayment Rule are simple: 1) career training programs should provide sufficient education to enable graduates to obtain jobs and
actually pay off their
debt without a significant financial hardship and 2) students defrauded by their schools should be able to have their loans
discharged.