Student Union
Student Debtor Forgiven $220,000 in School Loans
A judge in bankruptcy court has ruled in favor of a law school graduate who asked to have more than $220,000 in student debt erased.
The case is notable because student debt is commonly thought to be unforgivable in bankruptcy cases, a lament of many students who leave college saying they are too financially burdened to advance the milestones of adulthood, like buying property or having children.
But borrower Kevin J. Rosenberg, 46, of Beacon, N.Y., asked the court to forgive his student debt because repaying the loans was impossible and created an undue hardship, the legal test of whether a debtor should be forgiven.
Rosenberg’s student debt commenced in 1993, when he enrolled as an undergraduate at the University of Arizona, according to court documents. After receiving a bachelor’s degree in history, he served in the U.S. Navy on active duty for five years.
He then attended Cardozo School of Law at Yeshiva University in New York from 2001 to 2004. His degrees were financed by student loans.
When he graduated from law school in April 2005, he consolidated his debts with a nonprofit corporation called Educational Credit Management Corp., (ECMC), owing $116,464 in principle on the loan amount before interest. But by November 19, 2019, the 3.38% interest rate expanded that loan debt to $221,385.
Rosenberg is among a small percentage of student debtors – 2% -- who owe most of the nation’s $1.7 trillion student debt. This group borrowed money to pay for expensive graduate school programs, like law and medicine.
The average loan debt for law school graduates in 2012 was between $84,600 and $122,158, according to the American Bar Association. Almost 70% of law school graduates in 2016 left with student debt, according to the National Center for Education Statistics.
ECMC -- a nonprofit lender organization headquartered in Minneapolis, Minnesota -- argued that Rosenberg did not meet the undue hardship standard. They cited his age (45), health, lack of dependents, two degrees, and law licenses in New York and New Jersey in their legal brief.“
Shortly after starting his first job as an associate attorney at a law firm, [Rosenberg] decided that practicing law was not for him, because he disliked working in an office and did not find the work interesting,” New Jersey attorney Kenneth Baum, who represented ECMC, wrote in his court brief.
"Thus, after leaving that job after only 2½ months, [Rosenberg], with the exception of a brief period of working as a part-time contract attorney on a project basis – which [he] likened to working as a paralegal – has not sought any employment in the legal profession and has no intention of ever doing so, despite the fact that opportunities abound for Plaintiff to make a very respectable living in the legal profession," Baum wrote.
Rosenberg was quoted in Yahoo Finance on January 12, saying, “First of all, I realized the whole job is sitting in the office by yourself. You can't be creative at all, but also that you either help people out or you make a good living -- you can't do both. And I kind of had a problem with that.”
But Rosenberg told VOA that his hardship was caused by the collapse in the bricks-and-mortar retail industry in 2017, when a shop he owned in the Park Slope neighborhood of Brooklyn, New York City, failed because consumers made their purchases online.
"I left the law in 2005 and filed for bankruptcy in 2018," Rosenberg told VOA in email and by phone. "In between, I was able to launch a business as a street vendor and grow it into a small shop, and then with the help of an investor, a much larger shop that was nationally recognized, before brick & mortar retail collapsed in 2017. It was nation’s switch to ecommerce and the collapse of retail that directly caused my bankruptcy."
Judge Cecelia G. Morris, chief U.S. Bankruptcy judge in the Southern District of New York, agreed with Rosenberg. She used the student-debt test case, Brunner v N.Y. State Higher Education Services Corp., from 1987 differently than other decisions. “
Brunner has received a lot of criticism for creating too high of a burden for most bankruptcy petitioners to meet,” Morris wrote. For Brunner, who filed for bankruptcy within a year of graduation, “the test is difficult to meet,” she wrote. “
However, for a multitude of petitioners like Mr. Rosenberg, who have been out of school and struggling with student loan debt for many years, the test itself is fairly straightforward and simple," she said.
Rosenberg was relieved of his debt.
Student-loan experts say that most students are under the impression that student debt cannot be relieved in bankruptcy court. Some get bad advice from attorneys who also believe student debt cannot be forgiven in bankruptcy court. “
You can't discharge student loan debt in bankruptcy: That was the prevailing wisdom,” said Jason Iuliano, an expert in student debt and assistant professor of law at Villanova University in suburban Philadelphia.
But Iuliano, whose own student debt was hundreds of thousands of dollars after receiving degrees from Harvard University and Princeton University, dove into the caseload and found that wasn’t true. “
What I found when I actually went in and collected the cases was a lot of folks actually do meet the [undue hardship] test,” he said. “About 40% of the student loan debtors in bankruptcy … are successful in getting a discharge of some sort. And that struck me as really important.”
Iuliano said about 250,000 student debtors file for bankruptcy each year. But only about 500 of them take a necessary additional legal step – an adversary proceeding - to address college-loan specific debt. Only 1% end up going in front of a judge.
"A lot more people should be filing and trying to prove undue hardship, because they would be successful if they actually came before a judge,” Iuliano advised.
Ashley Harrington, senior policy counsel for the Center for Responsible Lending, celebrated the decision, but said student debt that impacts low-income and minority borrowers more than any others should be addressed long before debtors end up with interest-bloated loans. “
My initial thought was, ‘This is great, good for him.’ We’ve always supported student-loan discharge of both private and federal loans,” Harrington said. “But, there still is a need for Congress to do something about it.”
Among students in the Class of 2016, 70% borrowed an average of $30,000, Harrington said.“
People are really struggling under this debt for a very long time. Your repayment term is 20 to 25 years, and that’s as long as some people’s mortgages," she said.“
Part of the conversation is changing in judicial chambers because everyone is realizing what a crisis this is, seeing how it effects students’ lives,” Harrington added. “How much help have you given them?”
Rosenberg said he is frustrated by "some folks [who] come away acting like my case was a scheme to get out of a bad decision and it wasn’t.
"I did everything I could to avoid bankruptcy and tried to work things out with the lenders but they refused to budge ... I only filed for bankruptcy when I had no other realistic option."
ECMC has the right to appeal the decision. Spokesperson Laura Telander Graf emailed VOA that “We are reviewing the ruling to determine how we will proceed.”
See all News Updates of the Day
- By VOA News
Fewer men enrolling in college
In the last few years, the number of men enrolled in U.S. colleges and universities has dropped by 6%, and the proportion of male students is at an all-time low of 41%.
Lauren Hamilton of WAMU American University Radio looks at why the shift is happening, and what universities are doing about it. (August 2024)
Nine charged in police breakup of pro-Palestinian camp at US university
Authorities have filed charges against nine people who are accused of trespassing or resisting police during the May breakup of a pro-Palestinian camp at the University of Michigan.
"The First Amendment does not provide a cover for illegal activity," Attorney General Dana Nessel said Thursday, a day after charges were filed in Washtenaw County.
The camp on the Diag, known for decades as a site for campus protests, was cleared by police on May 21 after a month. Video posted online showed police using what appeared to be an irritant to spray people, who were forced to retreat.
The university said the camp had become a threat to safety, with overloaded power sources and open flames.
Nessel said two people were charged with trespassing, a misdemeanor, and seven more people were charged with trespassing as well as resisting police, a felony.
Protesters have demanded that the school's endowment stop investing in companies with ties to Israel. But the university insists it has no direct investments and less than $15 million placed with funds that might include companies in Israel. That's less than 0.1% of the total endowment.
U.S. Representative Rashida Tlaib, a Detroit Democrat who supports the protesters, said the charges were "frivolous" and a "shameful attack" on the rights of students.
Separately, Nessel said state prosecutors charged two people for alleged acts during a counterdemonstration on April 25, a few days after the camp was created.
Nessel said authorities still were investigating spring protests at the homes of elected members of the university's governing board.
- By VOA News
Colleges get ready for return of protests
After a summer lull when most students left campuses, colleges and universities are getting ready for the possible return of protests over the war in Gaza.
USA Today reports that while activists are likely to resume demonstrations, many schools have prepared by enacting harsher rules for those causing disruptions. (August 2024)
US research university ends ties with school in China
Amid national security concerns, the Georgia Institute of Technology has ended its partnership with Tianjin University in Shenzhen, which U.S. lawmakers say has ties to the Chinese military.
The Washington Post reported that an official at Georgia Tech said the Georgia Tech Shenzen Institute became untenable because of a problematic partnership, global politics and pending legislation. (September 2024)
International students share diverse views on 2024 US elections
International students in the United States are observing the 2024 presidential election with a mix of curiosity and concern, highlighting the global interest of American politics in the rest of the world.
When speaking with some current and former international students who have witnessed several U.S. presidential election campaigns, they were drawn to the openness of discussions and the amount of information available about the process.
They appreciate the high level of engagement and transparency in the electoral process, which stands in stark contrast to the more restricted political environments in their home countries. Their diverse feedback highlights the global interest in and impact of American politics.
Musbah Shaheen, a native of Syria, arrived in the U.S. in 2014 for undergraduate studies at Vanderbilt University. Now an assistant professor at the University of Massachusetts Amherst, Shaheen said he initially found the political landscape confusing.
“The first U.S. election I experienced was in 2016. At the time, I didn’t even realize I was experiencing an election in the same way I did in 2020,” he said. “My interaction with the political system in the [United] States has been an eye-opening experience.”
In Syria, political discussions were often avoided, he said, adding that, “Politics was taboo. Family gatherings involved hushed conversations with windows closed and voices lowered.”
This contrasted sharply with the open political discourse he encountered in the U.S.
“In the United States, people sometimes feel like their voice doesn’t matter, but I have experienced actual fear of vocalizing what I believed. This country does feel like there is room for conversation and debate in a way that I didn’t really get when I was in Syria,” Shaheen said.
Now a faculty member, Shaheen emphasizes guiding students through ideological differences.
“I want my students to understand not just the policies but the ideologies behind them,” he said. “What does it mean to be conservative or liberal? What are the foundational beliefs of these ideologies?”
Shaheen emphasized the need to create both physical and emotional spaces where students can freely discuss topics like U.S. politics. Moreover, Shaheen calls for increased intellectual engagement.
“We need to encourage all students, international and domestic, to reflect on their beliefs and engage in meaningful conversations. We don’t want siloed resources for our students; we want them to engage with a variety of ideas,” he explained.
Rohan Naval, from Bengaluru, India, and a political science student at American University in Washington, offers a different perspective.
Naval, who has been studying in the U.S. for a year, mentioned being impressed by the extensive media coverage of U.S. elections.
“From a student’s perspective, I like the way U.S. elections are conducted. There’s a lot of media coverage, and efforts to get voters registered and informed are commendable,” he said.
Naval expressed surprise at the unpredictability of the current U.S. campaign.
“Everything we’ve seen over the last two months has been very surprising, like the assassination attempt on Donald Trump. It’s hard to predict what will happen next,” he said.
He was particularly surprised by President Joe Biden’s decision to drop out of the race after participating in just one debate.
Naval, who grew up in India, compared U.S. and Indian elections, noting the convenience of mail-in ballots in the U.S. and the transparency in the counting process.
“In India, voters often have to travel long distances to cast their ballots, whereas in the U.S., the process is more accessible,” he said.
Victoria Charalampidi, a recent graduate from the American College of Greece where she majored in communication with a minor in international affairs, had studied in the U.S. in 2022 at Loyola University in Baltimore, Maryland.
“When I arrived, Joe Biden was president. I viewed his presidency as a shift away from Trump’s administration,” she said.
She noted that Trump’s economic policies had some positive effects, but she thought his approach to politics was often more divisive compared to Biden's approach during his candidacy.
Charalampidi said she found the complexity of governing a diverse nation intriguing.
She said she is disappointed with the current political campaigns in the U.S., which she said seems more polarized.
“The focus on military engagements and the rollback of policies like abortion rights show a country struggling to move forward while clinging to old values,” Charalampidi said.
She also says the campaign of Vice President Kamala Harris, the Democratic presidential nominee, represents progress as a woman of color is competing for high office.
As international students navigate the complexities of U.S. elections, their insights offer a valuable perspective on the global impact of American politics.
