by Carlos Garcia –
Lawyer argues that his $220,000 student loan debt is so huge he shouldn’t have to repay it — and a judge agrees
The case could make it easier for other student loan debtors to dismiss their debt
A lawyer argued in court that his $220,000 student loan debt was so massive that he shouldn’t be expected to pay it back, and a bankruptcy court judge agreed.
Navy veteran Kevin J. Rosenberg argued that the debt constituted an undue financial hardship because at the time of the filing, his annual salary was $37,600, and he would not be able to make payments to lessen his debt.
Rosenberg borrowed $116,500 to obtain a bachelor’s degree and also a legal degree.
But by 2018 when he filed for bankruptcy, the amount had ballooned to $221,400 including the interest charges.
Judge Cecilia G. Morris in New York bankruptcy court ruled in his favor and said he did not have to pay the massive debt.
She said that banks had been misinterpreting a rule for dismissing debts, and that she would rule against that interpretation.
“This Court will not participate in perpetuating these myths,” Morris said in her ruling.