What Consequences? Judge Rules Student Loans Of Broke Lawyers Can Be Cancelled

Following SCOTUS’ decision not to hear a case making it easier to get rid of student debt, and The White House’s push to ease student loan ‘burdens’, WSJ reports a federal judge ruled law-school graduates who file for bankruptcy protection can cancel the debt they racked up while studying for the bar exam.
In an opinion filed Thursday, Judge Carla Craig of the U. S. Bankruptcy Court in Brooklyn, N. Y., said bar-exam loan debt is ‘a product of an arm’s-length agreement on commercial terms’ and doesn’t fall into the category of student loans that stick with a borrower who files for bankruptcy.
The decision, which is the most thorough recent ruling on the matter, contradicts the widely accepted notion that student loan-related debt can be canceled in bankruptcy only under rare cases of extreme financial hardship.

This post was published at Zero Hedge on 03/28/2016.