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2nd Circuit says private student loans can be discharged in bankruptcy

2nd Circuit says private student loans can be discharged in bankruptcy   Privately issued student loans may be discharged in bankruptcy, a federal appeals court has ruled. In its decision Thursday, a three-judge panel of the 2nd U.S. Circuit Court of Appeals at New York affirmed a bankruptcy court’s denial of Navient Solutions’ motion to dismiss a case brought by a borrower who argued his private educational loans were discharged in bankruptcy. The student loan servicer claimed that a provision in the U.S. Bankruptcy Code prevents a borrower from discharging “obligation[s] to repay funds received as an educational benefit, scholarship, or stipend.” The panel, however, said under that reading, the “term ‘educational benefit’ would encompass virtually all private student loans.”

Federal judge finds DACA unlawful, blocks new applicants

Federal judge finds DACA unlawful, blocks new applicants POLITICO 2 hrs ago By Sabrina Rodriguez and Josh Gerstein © AP Photo/Ross D. Franklin Deferred Action for Childhood Arrivals recipients listen to speakers during a news conference. A federal judge in Texas on Friday blocked the Biden administration from approving new applications for the Obama-era Deferred Action for Childhood Arrivals program but current DACA recipients will remain unaffected for now. In a 77-page ruling, U.S. District Court Judge Andrew Hanen found that DACA is unlawful and that the Department of Homeland Security can no longer approve new applicants into the program, which has granted work permits and protection from deportation to more than 600,000 young immigrants brought to the U.S. as children. He also ruled that DHS could continue to process DACA renewals for now as the issue continues to move through the courts.

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