Private education loan & school goes bust - can debt be partially cancelled?

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RFS1

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If a US bank gives an American student a private education loan for studies at a foreign med school and the school goes bust before the student can finish and graduate - does the student have any case for trying to get some of the debt to the bank cancelled .... for the year the school stopped, and/or previous years? Does the bank have any liability in this? Curious to know the legal situation....

Thanks for any help!
 
RFS1 said:
If a US bank gives an American student a private education loan for studies at a foreign med school and the school goes bust before the student can finish and graduate - does the student have any case for trying to get some of the debt to the bank cancelled .... for the year the school stopped, and/or previous years? Does the bank have any liability in this? Curious to know the legal situation....
Good question... my guess is unfortnately not. The bank lends money and it is your responsibility to pay it back. The fact that the school went under isn't the bank's problem now is it? Unfortunately that risk passes to you since the deal is that you borrowed money, not the school... at least that is my take on it. Good luck to you and I hope you get to finish school. :D
 
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