Its recognized there is “a unpleasant disconnect involving the initial intent behind the student-loan system to democratize United states advanced schooling together with financial policies which are essential to make sure system solvency and protect borrowers from enslaving financial obligation and inescapable default. ” 30 Robert C. Cloud & Richard Fossey, Facing the pupil Debt Crisis: Restoring the Integrity regarding the Federal scholar Loan Program, 40 J. C. & U. L. 467, 496 (2014). The hardship that is undue into the exceptions to discharge supply for the Bankruptcy Code has additionally been deemed “unworkable” as a result of just how inconsistent answers are whenever judges use the exclusion. 31 Milligan, supra note 5, at 254. Inconsistent judicial determinations of undue difficulty are problematic due to the method they undermine the uniformity and effectiveness of bankruptcy legislation. 32 Nat’l Bankr. Rev. Comm’n: the following two decades: last Report, 1.4.5, chapter 5 (1997) (saying that bankruptcy legislation should treat debtors uniformly)). Appropriately, there is certainly a pushing importance of a reevaluation of this standard courts used to determine the dischargeability of figuratively speaking in bankruptcy.
Two problems have a tendency to arise into the debate over prov 33 Pardo & Lacey, supra note 20, at 510. Scholarly research and situation law prov 34 Id. This Comment adopts the argument advanced level by Professor Rafael Pardo and Professor Michelle Lacey that the undue difficulty inquiry within the bankruptcy context should always be restricted to an inquiry as a debtor’s power to repay academic financial obligation regardless of the debtor’s prebankruptcy conduct, as a result cons 35 Id. This Comment expands with this argument by trying to other law that is federal the undue difficulty standard to discern an even more coherent way of interpreting and applying undue difficulty for purposes of determining whether academic financial obligation should really be considered dischargeable in bankruptcy.