The rest section of this information focuses primarily on checking out each one of the three sandwich-parts of 523 (a)(8) in the context of private education loan debts. The first part of that it around three-part blog post focuses primarily on Point 523 (a)(8)(A)(i). Next and you will third avenues discuss Part 523 (a)(8)(A)(ii) and you can Part 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.
What of AI states one to an obligations incurred from the an enthusiastic “an useful benefit overpayment or financing made, covered, otherwise protected by the a political product
Both of these variations signify individual figuratively speaking is actually excepted out-of release in next clause out of AI (and not the first condition) if: (1) the borrowed funds was made under an excellent “financing program” and you may (2) the application try “funded” of the a low-money organization. Continue Reading