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Blake Zeff Wikipedia, Bio, Wife, Age, Biography, Wiki, Net Worth
Blake Zeff Wikipedia, Bio, Wife, Age, Biography, Wiki, Net Worth – Due to the Biden administration’s one-time cancellation plan, which is now being held up by the courts, and another halt on repayment, until June 30, 2023, student debt has been in the news.
Blake Zeff Wikipedia, Bio, Wife, Age, Biography, Wiki, Net Worth
But bankruptcy, according to Blake Zeff, the filmmaker of the recent documentary “Loan Wolves,” is an under-discussed option for the spiralling crisis that affects 43 million borrowers and has a total debt of more than $1.6 trillion.
At the moment, it is practically difficult for debtors to file for bankruptcy due to student loan debt because of two words added to a 1990s law.
Undue Hardship
The documentary “Loan Wolves” follows Zeff as he investigates the enigmatic history of the “undue hardship” clause, which was added to the 1998 revision of the Higher Education Act and is responsible for the current bankruptcy issues faced by student loan borrowers.
Before switching to a career in journalism, Zeff worked for Sen. Chuck Schumer for three years as a senior aide and as a senior policy and communications adviser in the New York Attorney General’s Office. He has spent the majority of the last six years studying student loans, bankruptcy, and the “undue hardship” clause.
According to current student loan laws, borrowers must demonstrate “undue hardship” in order to have their debts forgiven through bankruptcy. To meet this requirement, a judge must find that the borrower has made a good-faith effort to repay the debt but is unable to maintain a “minimal standard” of living and that their situation is unlikely to get better. The stringent regulatory criterion has long been criticised as being too arbitrary and onerous for lenders to be expected to meet, notably by groups like the American Bar Association.
Few borrowers can discharge their student loans under the “undue hardship” criteria, which is a stricter bar than dismissing other debts, such as credit cards, gambling debt, or collection agency accounts. This includes even individuals who are dealing with cancer and crippling epilepsy.
Step in Right Direction
In an effort to make it simpler to get rid of burdensome debt, the Departments of Education and Justice released new recommendations about bankruptcy for student-loan borrowers on Thursday, November 17. The new regulations might not, however, be the solution they claim to be.
According to Zeff, a former politics editor at Salon, “it’s definitely a step in the right direction, and I’m really glad that this is a conversation that has made its way to the president’s desk.” But see, with these things, the devil is always in the details.
By taking into account a borrower’s present and potential ability to pay as well as a good-faith effort to make payments, as determined by Justice Department attorneys in consultation with the Department of Education, the Biden administration’s new guidance aims to clarify the criteria necessary to meet the “undue hardship” standard.
The criteria are still somewhat arbitrary and not codified into law, so they might be ignored by the following government if a law is not established, even though the new guidance may be beneficial for some.
As the Biden administration has moved forward on commitments to discharge some student debt and address the escalating debt crisis, the discussion surrounding the “undue hardship” clause and student loan discharge through bankruptcy has changed in recent years.
Legal objections are currently impeding the administration’s attempt to discharge between $10,000 and $20,000 per federal borrower, and the case is being appealed to the Supreme Court.
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Categories: Biography
Source: HIS Education