Examining the Student Loan Crisis
Hosted by the Commercial Bankruptcy and Restructuring Committee
NY CLE: 1.5 Credits in Areas of Professional Practice, Transitional/Non-Transitional
Program Chair: William Hao, Co-Chair, Commercial Bankruptcy and Restructuring Committee
Karthik Bhavaraju, Senior Director, Goldin Associates LLC
Carolyn Fast, Special Counsel, Consumer Frauds & Protection Bureau, New York State Office of the Attorney General
William Hao, Senior Attorney, Alston & Bird LLP
Jessica Liou, Senior Associate, Weil, Gotshal & Manges LLP
Moderator: Vincent Roldan, Partner & Co-Chair of Bankruptcy and Restructuring Group, Ballon Stoll Bader & Nadler P.C.
The United States alone has approximately $1.2 trillion in outstanding student loan debt, 40 million borrowers and an average debt balance of $29,000. Lenders package these loans into student loan asset-backed securities (“SLABS”) for investors to purchase.
The number of student loan borrowers and the average balance per borrower is rising year after year. Evidence has shown that even in the current recovering economy, the majority of new college graduates have not been able to find jobs that allow them to pay back their student loans. Could the student loan industry be the next market implosion to trigger a financial crisis?
The Commercial Bankruptcy and Restructuring Committee has gathered a panel of finance, bankruptcy, and education law experts to discuss the motivations of various parties involved and provide practical advice on how to navigate the market pressure revolving around student loans, including its effects on other industries, the regulatory environment for student loans, and other issues arising from the current state of student loan borrowing in the United States.