Citigroup, formed by the 1998 merger of Travelers and Citicorp, is the largest U.S.-- based bank holding company. It engages in questionable high interest rate lending in low income communities across the United States, and now globally, through its CitiFinancial unit. Though its investment bank, Citigroup underwrites and trades in pools of loans issued by other predatory lenders. It has assisted Enron, WorldCom, and others; it has settled a slew of securities charges on the cheap. Citigroup finances and is involved in such environmentally destructive projects, including as a purchaser, despite contrary claims and its surreal inaccurate advertisements. Citigroup is nearly the definition of "predator."
Wells Fargo has an alternative loan program that doesn't require certification from the school. You can borrow as much as you can qualify for based on your credit
The bankruptcy courts originally treated student loans the same as any other unsecured debt. Student loans could be listed in a Chapter 7 filing and fully discharged. However, in 1976 Congress modified the Higher Education Act of 1965 and required student loans to be nondischargeable unless: (a) the debt first became due more than 5 years before the date of filing of the bankruptcy, or, (b) failure to discharge the debt would cause "undue hardship" to the debtor or to dependents of the debtor. In 1990, Congress extended the 5 year rule to 7 years and eventually eliminated the time limit altogether in 1998. Thus, the only option debtors currently have for bankrupting their student loans is to prove repaying their student loans would cause an "undue hardship." Student loans are listed in the Chapter 7 bankruptcy as one of the outstanding debts held by the debtor. The debtor must then file an Adversary Proceeding in conjunction with the Chapter 7 bankruptcy case within 60 days of the meeting with the creditors. The adversary proceeding is against the Department of Education (or other guarantee lender) and asks the court to determine if the "undue hardship" clause applies. If the court decides §523(a)8 applies to the case, then the student loans are discharged through the Chapter 7 bankruptcy.
Under certain circumstances you can discharge your obligation to repay a student loan in bankruptcy. The criteria is set out at 11 U.S.C. 523 (a)(8. Currently your loan may be discharged only if the first payment became due on the debt at least seven years before the bankruptcy was filed.
MBNA and Bank of America (BofA) already merged. The $35 billion deal creates a combined financial giant with 20% of the U.S. credit card market. Both companies have a track record of lending practices that harm consumers. Bank of America has a strikingly disparate lending record and is extensively involved in subprime lending. MBNA's record of mortgage lending is questionable, and has a history of spending heavily to influence federal legislation that will increase its own profits at consumers' expense.The two companies and their employees have given federal candidates and parties nearly $22 million over the past 15 years — making a merged BofA-MBNA America's top corporate contributor. BofA made more than 2.4 million in campaign contributions last year. In 2004, MBNA surpassed Enron as the single largest donor to George W. Bush. MBNA showered millions on federal candidates (more than 1.5 million in 2004 alone) as it took a leading role lobbying for bankruptcy "reform" -- legislation passed by Congress and signed by Bush on April 20, 2005 that will make it much harder for consumers to file for bankruptcy.
"Brunner Test" -- Brunner v. N.Y. State Higher Educ. Servs. Corp. (In re Brunner), 831 F.2d 395 (2d Cir. 1987), aff'g 46 B.R. 752 (Bankr. S.D.N.Y. 1985) It should be noted that even in courts that use the same test, the "subtleties" by which the tests are applied often produce inconsistent results. Many courts have harshly and narrowly ruled that debtors cannot discharge educational loans unless they can demonstrate "a certainty of hopelessness" about their long-term financial condition. The Brunner test has currently been adopted and used in the 2d, 3d, 6th, 7th, and 9th Circuit Courts. Not formally adopted, but has been used in the 5th, 10th, and 11th Circuit Courts. Although the debtor in that case lost and was rquired to make payments on her student loans, the Brunner test became the most widely used legal instrument for determining undue hardship.The court articulated the belief that student loans are different from other unsecured debt because there is little or no consideration given to the borrower's credit status. Further, student loans require no co-signers or collateral. For access to this easy money through federal loan programs, the government demands quid pro quo. In return for obtaining a government loan, students are denied access to bankruptcy and discharge of their student loans in all but the most hopeless of circumstances. To discharge student loans under the undue hardship rule as specified by Brunner, it must be shown: (1) that the debtor cannot maintain, based on current income and expenses, a "minimal" standard of living ... if forced to repay the loans; (2) that additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and (3) that the debtor has made good faith efforts to repay the loans. All three prongs must be satisfied for a student loan debt to be discharged.
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