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Home > Inside PASSHE > Chief Counsel > Legal Topics > Student Affairs > Student Financial Aid

Student Financial Aid

The area of student financial aid has been the recent subject of extensive press coverage. Investigations by the New York Office of Attorney General revealed that financial aid officers in multiple states have been recommending student loan companies based on a personal financial interest of in exchange for gift incentives. Settlement agreements have been reached with several higher education institutions and loan providers.
 

Laws and Regulations


Cases

  • In re Fabrizio, 2007 WL 1219646 (Bankr.W.D.Pa.). A Chapter 7 debtor did not make a good-faith effort to repay his consolidated student loan thus failing to satisfy the Brunner test governing undue hardship discharge of a student loan debt. The debtor made no loan payments after his loan consolidation date, even though for all but six months of that time period he was earning $37,000 per year. The debtor also did not show that his financial situation was due to factors beyond his reasonable control, and the student loan debt was approximately 80 percent of the original debt to be discharged. A copy of this decision is not available. Please contact your University Legal Counsel if you would like to see this opinion.

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