The remainder element of this article centers on taking a look at every one of the 3 sub-chapters of 523 (a)(8) in the context of private student loan bills. The original section of this around three-part blog post targets Section 523 (a)(8)(A)(i). The next and you will 3rd areas speak about Part 523 (a)(8)(A)(ii) and you payday loans CA can Section 523 (a)(8)(B), correspondingly.

Section 523 (a)(8)(A)(i) (hereinafter “AI”) is the first sub-section of Section 523 (a)(8). or made under any program funded in whole or in part by a governmental unit or non-profit institution” is non-dischargeable.

The second use of the word “or” separates AI into two clauses. There are two notable distinctions between the two clauses. The first distinction is that the first clause is limited to “loans,” whereas “the second clause of AI concerns loan programs, [not] particular loans.” In re O’Brien 318 B.R. 258, 262 (S.D.N.Y. 2004) (emphasis added) (citations omitted). The other notable difference is that the first clause is limited to loans by a “governmental unit,” and the second clause includes governmental units and non-profit institutions. Continue reading →