The Fifth Circuit has released a new opinion which underscores just how hard it is to discharge a student loan under the undue hardship standard. Thomas v. Department of Education (In re Thomas), 931 F.3d 449 (5th Cir. 2019).
A Sympathetic Debtor
Vera Thomas wanted to improve her station in life. She was working at a call center in Southeastern Virginia earning $11.40 per hour with benefits. In 2012, she decided to enroll in a local community college. She took out two loans for $3,500.00 each for her first two semesters. She did not return for a third semester and her loans went into repayment. In spring of 2014, she paid back about $82 on her loans.
