Murphy v. Pennsylvania Higher Education Assistance Agency & Educational Credit Management Corp.

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• declining to adopt interpretation of § 523(a)(8) that “would create perverse incentives for student borrowers, squarely at odds with the only purposes that Congress has ascribed”
• “Treating FFELP guaranteed loans uniformly, regardless of actual use, is true to the text and will prevent recent graduates from reneging on manageable debts and will preserve the solvency of the student loan system.”
• affirming lower court's holding that loan proceeds in excess of tuition and expenses used by debtor for discretionary spending, such as car, housing, food, fraternity dues and other ordinary living expenses, did not except debt from discharge
• portion of federal student loan used by debtor to purchase a car and to pay for housing, food, and fraternity dues is excepted from discharge
• “Section 523(a)(8) does not expressly state that only loans ‘used for tuition’ are nondischargeable. Nor does it define educational loans as excluding living or social expenses.”

Source: CourtListener parenthetical corpus (CC0).