Supreme Court Will Hear Appeal in Student Loan Case

June 16, 2009

The U.S. Supreme Court has agreed to consider an appeal of a dispute over the circumstances in which bankruptcy plans that include student loans can include a lower level of repayment than would have been the case under normal circumstances. The court is considering the case of Francisco J. Espinosa, whose repayment plan was seen as too lax by United Student Aid Funds. The U.S. Court of Appeals for the Ninth Circuit sided with Espinosa, but other circuits have been more favorable to lenders in similar situations.

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