Teacher Near Retirement Can’t Wipe Out Growing Student Loan Debt

A teacher nearing retirement can’t wipe out more than $51,000 in student loans in her Chapter 7 case because she failed to show it would impose an undue financial hardship, the U.S. Bankruptcy Court for the District of New Mexico held.

Although Mariah Regan’s frugal budget has a negative net monthly income, she can make additional income by teaching summer school, taking on a second job, and receiving state and federal income tax refunds, Judge Robert H. Jacobvitz wrote Sept. 6.

While sympathetic to Regan’s plight that the loan amount has substantially increased over the life of the loan due ...