Debt For Military Education Not Dischargeable

Bankruptcy Lawyers Blog: 3rd Circuit Rules Reimbursement Debt for Military Education Not Dischargeable

The 3rd Circuit has ruled the military equivalent of a student is not dischargeable. A former student of the Air Force Academy challenged the debt repayment for his education after leaving the Academy without completing courses or his debt of service to the armed forces.

The cost of the education then became due, although not typically considered to be a student loan.

The 3rd Circuit treated the loan as one that fit the plain language of non-dischargeable debts under the code as being a debt

“for an educational benefit overpayment or loan made, insured, or guaranteed by a government unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution, or for an obligation to repay funds received as an educational benefit, scholarship or stipend, unless excepting such debt from discharge under this paragraph will impose an undue hardship on the debtor and the debtor’s dependents”