trade school loans dischargeable?
If you are in a bind like me. Signing a personal loan for truck driving school you will want to educate yourself about the law. How it pertains to trade schools and non traditional education. Iam on my first step to researching my situation, and for anyone who has a situation similar to mine, i will post my findings, and the progress of my situation to better help you. I filed pro se so im kinda on my own, but im definitely willing to fight my creditor every step of the way if i can.......
Although non-school-certified loans generally do not satisfy the requirements to be considered qualified education loans, it is important to evaluate whether each individual loan satisfies those requirements on a case-by-case basis. An education loan that is not school certified could still be a qualified education loan if it did not exceed the limits of a qualified education loan and was not disbursed for expenses outside the scope of a qualified education loan.
Some of the more common ways in which an education loan may fail to satisfy the requirements of a qualified education loan include:
1. Use at a college that is not a Title IV institution (i.e., a college that is subject to a program participation agreement under 20 USC 1087ll).
2. Use for costs not included within the definition of cost of attendance or in excess of the expected family contribution (or cost of attendance minus aid received).
3. Use for study abroad not approved for credit by the home institution.
4. Use for rental or purchase of equipment, materials or supplies that are not required by the institution.
5. Use for purchase of a computer without obtaining an adjustment to cost of attendance from the college for the cost of the computer.
6. Use for a previous year's school charges.
In order to be considered a "qualified education loan", an education loan must satisfy all of the following requirements:
1. The debt must be incurred "by a debtor who is an individual", per 11 USC 523(a)(8)(B).
2. The debt must be "incurred solely to pay qualified higher education expenses", per 26 USC 221(d)(1) by cross-reference from 11 USC 523(a)(8)(B). Mixed used loans, such as credit card debt or home equity loans, are not eligible, per example 6 of 26 CFR 1.221-1(e)(4). Even education loans are not eligible if they are incurred to pay for expenses other than qualified higher education expenses.
If an education loan fails to satisfy any of these requirements, it is not considered a qualified education loan within the meaning of 11 USC 523(a)(8) and hence may be subject to discharge in a bankruptcy proceeding.