student loan debt – Dispatches From The Front

The U.S. Supreme Court denied a student loan borrower’s petition to get student loan cancellation.

Here’s what you need to know—and what it means for your student loans.

Student Loans

A student loan borrower, Thelma McCoy, petitioned the Court to have nearly $350,000 of student loans discharged after the 5th U.S. Circuit Court of Appeals ruled that her student loans could not be discharged in bankruptcy. The Court denied McCoy’s petition for certiorari. McCoy borrowed $175,000 of student loans to earn a college degree, master’s degree and Ph.D. While earning her Ph.D., McCoy sustained injuries and said she could not find employment due to her disabilities. McCoy argued that paying student loans created an undue financial hardship. Unable to pay her student loans, McCoy filed for Chapter 7 bankruptcy in federal court in Texas to discharge her student loans, which had grown with interest to $350,000. However, McCoy did not get student loan cancellation. Why?

Student loans aren’t just negatively impacting you financially; they’re also hurting your chances of starting a new business, research finds.

Entrepreneurship is significantly hampered in parts of the country where residents carry more student loan debt, according to a recently updated study by researchers at Pennsylvania State University and the Federal Reserve Bank of Philadelphia.

For the study, student loan debt across the United States was analyzed by county and compared with small business creation in those areas. Researchers discovered that between 2000 and 2010 a one standard deviation increase in student debt reduced small businesses in those counties by an average of 14 percent.

Tag: student loan debt

Student Loan Cancellation Denied By Supreme Court—Here’s Why | Forbes

Student Loans Stunting Small Business Growth | Business News Daily