Discharge was violated, but sanctions are likely out of reach.
A debtor with a law degree but only $37,500 in gross annual income was permitted to discharge more than $220,000 in student loans.
Fifth Circuit bars nationwide class actions to enforce the discharge injunction. However, the appeals court ruled that private student loans are dischargeable.
Conflicting standards among the circuits warrant a grant of certiorari to define ‘undue hardship’ required for discharging a student loan.
The BAP avoided making a rule that would have allowed convicted felons to discharge student loans more easily than debtors with clean records.