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The first element of that it about three-part blog post targets Area 523 (a)(8)(A)(i). Next and you will 3rd avenues discuss Area 523 (a)(8)(A)(ii) and you will Part 523 (a)(8)(B), correspondingly.
These distinctions imply that personal student education loans try excepted off release under the second condition regarding AI (rather than the first condition) if: (1) the mortgage was developed below a great “financing program” and you can (2) the application form is actually “funded” of the a low-funds business
Section 523 (a)(8)(A)(i) (hereinafter “AI”) is the first sub-section of Section 523 (a)(8). The text of AI states that a debt incurred by an “an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, 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.
Find in lso are Hammarstrom 95 B.Roentgen. 160, 165 (Bankr.N.D.Cal. 1989) (“[f]irst, the mortgage have to be produced pursuant so you’re able to a beneficial “program” to possess getting instructional money. Second, you...
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