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 fu...