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Student loans but no education? Can you get rid of the loan?

Photo of Kathryn Hathaway

Chief Phoenix

Do you hate paying your student loans? Do you feel like the school made promises about your earnings or career and then didn’t keep those promises? Believe it or not, it is possible to get rid of your student loans without bankruptcy. Without disability. Without dying! The federal law making this possible has been on the books since 1994. But until 2015 it had only been used three times. Then scandal erupted around a career college that advertised the world, but only delivered a little dirt.

Corinthian College was a career college that attracted students by promising them a great future, great jobs and high earning potential. Students applied for student loans to pay the high tuition. Then students started to complain to the Department of Education that the school had not delivered on its promises. They weren’t earning the big bucks they were promised. Many couldn’t get jobs at all.

When the Corinthian College scandal broke, the Department of Education dusted off Section 455(h) of the Higher Education Act, and created a regulations and a system to bring this kind of defense. Students just have to show that the school promised an education, job or earning potential, that based on that promise the student registered and received student loans to pay for it, and then the school didn’t deliver.

The first report of the U.S. Department of Education’s Special Master appointed to solve this problem is at The report contains valuable information about student loans and the borrower defense, as well as a link to the form you must complete to apply for relief.

Getting rid of student loans for an education that didn’t deliver as promised may be one of your steps to rise like a Phoenix from the ashes of financial ruin.

Good luck!

Kathryn A. Hathaway
Chief Phoenix

Payday loan overlord Charles Hallinan faces racketeering probe

Read this article about payday loans and racketeering!

I was thrilled to see that the prime mover of the payday loan industry that has injured so many of my clients and friends is getting just desserts!  Payday Loans!

Have a wonderful day!

Rise, Phoenixes, Rise!

Kathryn A. Hathaway


A New Beginning

After over 20 many years of work as a bankruptcy lawyer, I’ve come to the conclusion that it isn’t enough to just get rid of debt or just save clients homes. We (and I do mean we) all need inspiration, education and tools to change our mindsets about money and debt. I’m not an expert in all the needed fields, but I know people who are!

Welcome to the Being the Phoenix blog and website. I have big dreams for this website.  I want it to evolve into a go-to site for people recreating their financial lives – rising like the phoenix from financial ruin.  I see it including a library of replays of Being the Phoenix’s Ask the Financial Expert teleclass (Click on the Teleclass page for more info); links to calculators of all kinds, articles on financial planning, investing, entrepreneurship, how to get a mortgage, how to finance a car, and loads of other topics; videos; a bulletin board where rising phoenixes can share questions, answers, and inspirations in a confidential environment.

What would help you to reinvent your financial life?  I look forward to your ideas because this site is for you!

Rise, fellow phoenixes, (is that the plural?)  Rise!

Kathryn A. Hathaway

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