From: Piper, Pat (ppiper@ufl.edu)
Date: Fri Apr 05 2002 - 15:10:56 EST
Hi Philomena,
Our policy is that anything charged to the student account is an
"educational benefit" and non dischargeable under 523(a)(8) of the
bankruptcy code (See http://www4.law.cornell.edu/uscode/11/523.html).
As a result, most debts are non-dischargeable and if delinquent, here at UF,
would need to be paid before services would be restored. This would depend
at least in part on your institutional policy of placing holds on student
records for delinquent debts. We place holds for any delinquent account of
one dollar or more.
However, if your student is applying for additional Title IV financial aid,
you need to be aware of changes in bankruptcy reform. Unless the student
requests a discharge based on undue hardship, it's unlikely that your
educational benefit tuition debt will be discharged in bankruptcy. I'd
suggest consulting with your attorney before treating this student any
differently than any other student. The Bankruptcy Reform Act of 1994
mandated changes
for schools, borrowers and loan applicants regarding Title IV aid.
Here is a link to a Q&A attached to Dear Colleague Letter GEN-95-40
regarding these changes:
http://www.ifap.ed.gov/dpcletters/doc0339_enclosure.htm
Best bet, consult with your attorney before proceeding.
Patrick Piper
Administrative Services Coordinator
University of Florida
University Financial Services
S-113 Criser Hall, PO Box 114050, Gainesville, FL 32611
(352) 392-0766 Fax: (352) 392-3448
ppiper@ufl.edu <mailto:ppiper@ufl.edu>
> -----Original Message-----
> From: Philomena Wilson [mailto:piw494@northwestern.edu]
> Sent: Friday, April 05, 2002 12:23 PM
> To: bursar-l@virginia.edu
> Subject: Bankruptcy
>
>
> Hello Everyone,
>
> I know that we have discussed bankruptcy time and again, but
> I guess none
> of us want to end up on the wrong side of the Law. So, I
> have a few issues
> and need your advice.
>
> If one of your students has a bankruptcy discharge, does this
> forgive the
> tuition charges also (I know that it definitely does not
> discharge the
> student Loans)? For the gurus out there, the bankruptcy I am
> now looking
> at is a Chapter 7.
>
> If you had to write off charges due to a bankruptcy, do you allow the
> individual to return and receive additional services? Under what
> circumstances do you allow the student back? Basically, what
> are your
> procedures governing bankruptcy?
>
> Thanks in advance for your advice and information.
>
> Philomena
>
> Philomena Wilson
> Northwestern University
> 710 N. Lake Shore Drive
> Chicago, IL 60611
>
> phone: (312) 503-8122
> email: piw494@nwu.edu
>
>
>
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