
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Author: Joel R. Glucksman
Date: February 27, 2014

Partner
201-896-7095 jglucksman@sh-law.comMoreover, student loan debt is essentially like an incurable illness – – it can never be “fixed” in Bankruptcy Court. Now, evidence is emerging that this one trillion dollar debt is impeding the recovery from the Great Recession’s housing collapse
An April, 2013 study from the Federal Reserve Bank of New York noted that the “aggregate student loan balance” had reached over nine hundred billion dollars by the end of 2012. Moreover, the bank noted that the percentage of 25 year olds carrying student loan debt had gone from just 25% in 2003 to 43% in 2012, and that the average debt balance was $20,326 in 2012.
Although most debt can be erased in bankruptcy, the 2005 changes to the Bankruptcy Code excepted from bankruptcy discharge any educational loans, made by or insured by governmental units, unless doing so would impose an undue hardship on the debtor and the debtor’s dependents. In order to fit within the “undue hardship” test, a student loan debtor must establish that, based upon his current income and expenses, (i) he cannot maintain a “minimal” standard of living for himself and his dependents if he is forced to repay the loan, (ii) these circumstances will persist for a significant portion of the loan repayment period, and that he made a good faith effort to repay the loan anyway.
Now, as reported in a recent article in The Washington Post, experts are wondering whether the growing student loan burden is undermining the nation’s attempt to recover from the housing crash of 2008. Although the housing market has improved recently, the demand for housing is now waning as the price of homes and mortgage rates have both gone up. Indeed, the Mortgage Bankers Association reports that, for the past four months, loan applications for home purchases have declined by nearly 20% as compared to the same period a year ago.
This is hardly surprising. First time buyers are clearly not entering the housing market in large numbers, due in part to the soaring level of student loan debt they are carrying. This is a worrisome trend for the future. Unless a way is found to ease the student loan debt burden, it will not simply be twenty-somethings who face difficulty in building secure financial futures. Rather, everyone who owns a house and counts on being able to sell it – – whether for retirement or to move up the housing ladder – – will be impacted. Without first-time buyers entering the “conveyor belt” of home ownership, the entire process will stall.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Compliance programs are no longer judged by how they look on paper, but by how they function in the real world. Compliance monitoring is the ongoing process of reviewing, testing, and evaluating whether policies, procedures, and controls are being followed—and whether they are actually working. What Is Compliance Monitoring? In today’s heightened regulatory environment, compliance […]
Author: Dan Brecher

New Jersey personal guaranty liability is a critical issue for business owners who regularly sign contracts on behalf of their companies. A recent New Jersey Supreme Court decision provides valuable guidance on when a business owner can be held personally responsible for a company’s debt. Under the Court’s decision in Extech Building Materials, Inc. v. […]
Author: Charles H. Friedrich

Commercial real estate trends in 2026 are being shaped by shifting economic conditions, technological innovation, and evolving tenant demands. As the market adjusts to changing interest rates, capital flows, and workplace models, investors, owners, tenants, and developers must understand how these trends are influencing opportunities and risk in the year ahead. Overall Outlook for Commercial […]
Author: Michael J. Willner

Part 2 – Tips Excluded from Income Certain employees and independent contractors may be eligible to deduct tips from their income for tax years 2025 through 2028 under provisions included in the One Big Beautiful Bill. The deduction is capped at $25,000 per year and begins to phase out at $150,000 of modified adjusted gross […]
Author: Scott H. Novak

Part 1 – Overtime Pay and Income Tax Treatment Overview This Firm Insights post summarizes one provision of the “One Big Beautiful Bill” related to the tax treatment of overtime compensation and related employer wage reporting obligations. Overtime Pay and Employee Tax Treatment The Fair Labor Standards Act (FLSA) generally requires that overtime be paid […]
Author: Scott H. Novak

In 2025, New York enacted one of the most consequential updates to its consumer protection framework in decades. The Fostering Affordability and Integrity through Reasonable Business Practices Act (FAIR Act) significantly expands the scope and strength of New York’s long-standing consumer protection statute, General Business Law § 349, and alters the compliance landscape for New York […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!