Student Loan Bankruptcy Class Injunction Sent to Appeals Court

A federal appeals panel should review a bankruptcy court’s order barring a group of private student loan lenders and servicers from attempting to collect on debts that were purportedly discharged in bankruptcy, a New York federal judge ruled.

Unsettled legal questions surfacing in a proposed consumer bankruptcy court class action against National Collegiate Trust, Goal Structured Solutions Inc., and their loan servicers should be decided by the US Court of Appeals for the Second Circuit, Judge Ramon E. Reyes Jr. of the US District Court for the Eastern District of New York said in a ruling Tuesday.

Reyes sent the ...