Legal Question in Credit and Debt Law in California

Re: Student Loans

I am sorry to hear that you are struggling, however, I fail to see how you were misled. You did what thousands of students do each year; the hope is that when you come out of school, you will earn more than you would have had you not gone to school. Are you suggesting that three years ago DeVry should have foreseen the impending economic collapse, and counselled you against going to school? I think that is a stretch. Remember that DeVry is a business (I don't even think they are a nonprofit school), and as such, so long as they are not using demonstrably misleading or deceptive practices in their marketing, then they are just doing what every other business does - market themselves to make money. Frankly, you are probably not going to find a lot of love on this board as you will find that most of the attorneys who post here have their own little student loan nightmare, and the legal business isn't what it used to be in terms of income 10 years ago. Can I go back 16 years later and sue my law school just because I'm not making the millions everyone thought they would back then? Absolutely not.

DeVry is a business, and unless you can, within the legal definitions of such, prove that they misled you, defrauded you or cooerced you into obtaining these loans, there isn't much you can do. I don't mean to sound un-sympathetic, but I just don't see where you are anything but another casualty of this horrible economy. If you honestly believe they misled you, this isn't the place to be - go interview one or more plaintiff's attorneys in your area to find someone to take on a lawsuit. I wish you good luck - it is a really difficult world out there, and being saddled with that debt is just another burden you probably didn't need.

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Re: Student Loans

It is possible to discharge (cancel) student loans in bankruptcy IF you can show undue hardship. Basically, the court will have to determine that you cannot pay these loans off, that your income is not expected to increase in the future so as to cover these loans, and that you have made a good faith effort to pay the loans before the bankruptcy. If the court finds such undue hardship, your loan will be cancelled. Further, even if you cannot show undue hardship, you may be able to temporarily reduce or completely stop payments on the student loans for 3-5 years in a Chapter 13. While this will not permanently eliminate your debt, it will give you some time to get your financial affairs in order, and hopefully in 3-5 years you will make enough to pay off the loans.