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From the Chronicle of Higher Education News Blog
U.S. Supreme Court Agrees to Hear Student-Loan Case
June 15, 2009
Washington — A relatively small amount of money at stake in an unusual bankruptcy case could have big implications for the student-loan industry.
The U.S. Supreme Court agreed today to hear arguments in a case that hinges on whether students can avoid repaying their federally backed student loans without showing that making the payments would cause them financial distress or “undue hardship.”
http://chronicle.com/news/index.php?id=6644&utm_source=pm&utm_medium=en
While the idea of student loans being subject to BK, the other shoe may drop by raising the cost and interest of SL as well as begin to make them harder to qualify for. We must all remember that students tend to often be the ones who get into credit trouble. And if there is a high default rate (more than standard) the costs get passed on in the form of higher interest, tougher qualification or less money availabe or all of the above.