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11 U.S.C. 525 provides (c) (1) A governmental unit that operates a student grant or loan program and a person
engaged in a business that includes the making of loans guaranteed or insured under a student loan program may not
deny a loan, grant, loan guarantee, or loan insurance to a person that is or has been a debtor under this title
or a bankrupt or debtor under the Bankruptcy Act, or another person with whom the debtor or bankrupt has been
associated, because the debtor or bankrupt is or has been a debtor under this title or a bankrupt or debtor
under the Bankruptcy Act, has been insolvent before the commencement of a case under this title or during the
pendency of the case but before the debtor is granted or denied a discharge, or has not paid a debt that is
dischargeable in the case under this title or that was discharged under the Bankruptcy Act.
Ohio Bankruptcy Law - In Practice
In summary, student loans should not be denied, unless a prior student loan was charged-off, or is subject to
charge-off in a pending case.
The operation of law pertaining to federal debt relief is complex. State law statutes, federal rules, and
decisions rendered by courts combine to establish a local standard for Ohio Bankruptcy Courts. Anyone who
considers filing should, at a minimum, balance short term requirements to long term benefits. Each debtor is
different. The most valuable benefits are a personal choice, with availability dependent upon the application of
law to unique circumstances.
Back to Ohio Bankruptcy Lawyer FAQ contents.
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