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Does this now result in no more private student loans? If I were a lender, there’s no way I’d now lend on a student loan.



I wouldn't bet on it. First of all, this ruling could be appealed. Second of all, it seems like the bar for whether student loan debt can be discharged may still be much higher than typical debt. Third, since this isn't an appeals court, I don't believe it sets any kind of binding precedent.

It's also not entirely clear that this ruling even represents a divergence from the general pattern. There are circumstances where student loans may be discharged, but it is rare for those circumstances to be satisfied. Perhaps this was just one case where they were.


My guess it'll cause the lenders to tighten up a bit, but won't be earth shattering.




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