Regardless, any consumer who has vocational student loans with a private lender should have their attorney go for a full discharge if the school they went to was not an “eligible education institution” under 26 USC 221(d)(1) and (2) means that the debts are not “qualified education loan(s)” under 11 USC 523(a)(8)(B), and therefore are dischargeable.”
Of course, the best way is to not take on these debts in the first place. One of the subjects profiled was mentioned as having acquired over $180,000 in student loan debts going to art school. I am not sure how one can spend more on art school than being a Doctor, but there you have it.
Tellingly, when I Googled the name of one of the "art schools" they went to, the website said, "Click here for a location near you!"
In other words, it was a no-name "for profit" art school.
You can make money going to art school. Andy Warhol got his start at a commercial art school. But the cost of tuition was pretty low - most trade schools have fairly low tuition. My great Aunt was an illustrator for A.C. Nielsen, after she got a degree as a commercial illustrator. She never made a lot of money at it, of course, but then again, she never expected to. Expecting huge riches in fields that pay poorly is not a very logical way to think. Borrowing nearly 200 grand to go to art school is just foolish.
But I am not sorry for the banks, of course. They made these private loans, hoping to ruin the student financially - and it backfired on them. Maybe now, banks will be a little more shy about loaning money to students to go to worthless "for profit" colleges, which in turn would shut down these exploitative operations.
"In United Student Aid Funds v. Pena (In re Pena), 155 F.3d 1108, 1112 (9th Cir. 1998), the Ninth Circuit adopted the three-pronged test set out in Brunner v. New York State Higher Education Services Corp. (In re Brunner), 831 F.2d 395,396 (2d. Cir. 1987). The Brunner test requires the debtor to prove that:
(1) Based upon current income and expenses, the debtor cannot maintain a minimal standard of living for the debtor and dependents if forced to repay the loan;
(2) Additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period; and
(3) The debtor has made a good faith effort to repay the student loan. Pena, 155 F.3d at 1111.
Each of these prongs must be satisfied in order to obtain a discharge. Carnduff v. U.S. Dep’t of Educ. (In re Carnduff), 367 B.R. 120, 127 (9th Cir. BAP 2007)."