A Judge Granted a Thirty-five-year-old Man Who Had Filed for Bankruptcy $100,000 in School Loan Forgiveness 

The Background of the Student Loan Forgiveness News

Two weeks ago, the news broke out that a thirty-five-year-old man named Ryan Wolfson gained a nearly impossible achievement of getting relieved from the charge of student debt worth one lakh dollars, which was counted as a bankruptcy. Whilst the administration of Biden is not in the favor of this providing this relief to Ryan Wolfson. 

Further Important Details of the Matter

On Wednesday, it was reported by a source that last week the Justice Department filed a notice of appeal on behalf of Miguel Cardona, the Education Secretary for the case of Mr. Wolfson.

Ryan Wolfson stated that he found a job after a lot of struggles and strive when he graduated from college in 2010 but after nine years, when he was working for ride-hailing services as a full-time employee, he had a sudden illness attack and confiscation and his car got damaged that badly that it was unrepairable. 

According to the court judge, when Ryan Wolfson was only twelve years old, he was diagnosed with that type of epilepsy which was curable and was not of a kind that would make Mr. Wolfson weak.

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For over the past ten years, Ryan Wolfson has been on medications, later he shifted to medical cannabis for a long-term and safe medical treatment. The judge further mentioned that Ryan Wolfson has provided proof of undue hardship, which is a crucial requirement to be met for being relieved from the bankruptcy charges.

Hence, because of this, the charges of the entire student debt load have been removed which were placed against Ryan Wolfson. 

The judge further stated that as per the evidence, Ryan Wolfson did a lot of efforts to get a job but the majority of the time he was either unemployed or underemployed since he passed out from his college.

Although his few jobs were full-time, their pays were very less and the chances of progressing, advancing, and growing were very near to no. The only financial support that prevented him from living in the worst poverty situation was all because of his father.

The evidence also proves further that the financial situation of Ryan Wolfson is not going to change or get better in the coming near time due to which he would remain unable to pay back the student loan debt. 

On Friday, Miguel Cardona appealed for that decision which would cause Ryan Wolfson to remain burdened under the load of student loan debt which he is not capable of paying.

student-loan forgiveness
student-loan forgiveness

The Vice President and Chief Counsel of Student Defense, Mr. Dan Zibel opposed the appeal and decision of Miguel Cardona rather he was very much dissatisfied after listening to what Miguel Cardona had said and what the Education Department had decided.

Student Defense is the organization that supports loan borrowers and provides them with all sorts of protection in a time of need. Mr. Dan Zibel stated that easing the loan burden on students has proven to be beneficial politically.

He is in favor of the decision taken by the court as it depicts how wrongly the student loan policies have been applied to the students. Rather he suggests the Education Department consider this decision mainly as it is the right approach. 

The Student Loan Debt Policies

In 2005, when Joe Biden was a senator and along with that, he was a part of parliament house and lawmakers, back then he supported the Bankruptcy Abuse Prevention and Consumer Protection Act according to which the loan borrowers had to meet a lot of requirements to get rid of their student loan debt through bankruptcy.

This bill was later signed as law due to which many borrowers had to face a lot of issues in meeting the stated requirements. Because of this bill and because of these requirements, Ryan Wolfson’s case had a great deal of importance. In the opinion of the judge, the court has been very much strict and harsh in the analysis of undue hardship. 

Last year, the Education Department and the Justice Department said that they would be revising the bankruptcy policies. Whilst if Joe Biden’s administration goes with the appeal decision, then there is probably a very lesser chance that most of the student loan borrowers would be able to win in the court.

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Whereas there still exists a group of lawmakers that wants these policies to be amended and the process to be renewed. In August 2021, Whip Dick Durbin, the Senator Majority, and John Cornyn, the Senator of Texas introduced a new policy of Fresh Start Through Bankruptcy Act of 2021, which would allow the loan borrowers to get relief from the loan debt after ten years.

Additionally, in July 2021, Danny Devis, Steve Cohen, and Eric Swalwell, the Representatives, presented the Private Student Loan Bankruptcy Fairness Act, which would treat private student loans equally as any other form of debt, meanwhile improving the procedure of bankruptcy relief. 

Hence all sorts of loans whether it is an educational one or a residential or any other one all follow you like your shadow until you pay back the entire amount and are relieved from it otherwise it will keep torturing you mentally and would destroy your peace completely.

Therefore, after keeping in mind all of the possible circumstances and consequences, the government and responsible institutions should relax the strictness of the loan borrowing, loan returning, and loan relieving policies so that people especially students can take the loan peacefully without any stress and return it also by following a calm and smooth process. 

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