Rubash v. U.S. Department of Education: 60-year-old law-school graduate unable to shed student debt in bankruptcy

Peter Rubash is a sixty-year-old graduate of Duquesne University School of Law. He practiced law for a time but lost his job and eventually went to work as a project manager for a public agency.

In 2018, Mr. Rubash filed an adversary action in a Pennsylvania bankruptcy court, seeking to discharge approximately $230,000 in student loans. According to a medical expert, Rubash was depressed.

According to the expert, Rubash's "occupational failure as [a] lawyer and his resulting debt have caused, or at the very least, exacerbated his psychological dysfunction." The expert also said that Rubash was underemployed in his present position and was unlikely to obtain "suitable employment consistent with [his] education and past levels of employment" (p. 2).

The U.S. Department of Education opposed Rubash's effort to shed his student-loan debt in bankruptcy. DOE argued that Rubash earned enough money to make payments on his college loans.  The agency

presented a long-term income-based repayment plan (IBR) that would require Rubash to pay $838 a month.

Judge Carlota Bohm, who decided Mr. Rubash's case, agreed with DOE and refused to discharge Rubash's student loans. Rubash earned about $49,000, the judge pointed out, and he received additional income as a consultant.  In Judge Bohm's opinion, Rubash could make payments of $838 a month and still maintain a minimal standard of living. (Judge Bohm's decision did not specify the repayment period--probably 20 or 25 years.)

Judge Bohn justified her decision by citing ample citations to case law. But let's think a little bit more about Mr. Rubash's situation.

Rubash obtained his bachelor's degree 38 years ago and probably got his law degree within three or four years after getting his undergraduate degree.  He's 60 years old now.  If he enters into a 25-year IBR plan, he will be 85 before he finishes his repayment obligations.  That means he will make his last student-loan payment 63 years after he graduated from college.

Somehow, our society has got to come to terms with the fact that millions of people have taken out student loans to obtain undergraduate degrees and professional degrees that are not worth what they paid for them. I don't know what Mr. Rubash paid to attend law school at Duquesne, but today the tuition price is $46,000 a year.

 Thousands of law-school graduates have taken out six-figure loans to get J.D. degrees only to enter a saturated job market.  We've got to come up with a better way of addressing this problem than 25-year income-based repayment plans.

References

Rubash v. U.S. Department of Education, Bankruptcy No. 18-20449 CMBA Adversary No. 18-2028-CMB, 2020 WL 2554234 (Bankr. W. D. Pa. May 19, 2020).

Portland protesters: Are student loans and a crummy job market driving the anger?

Like many Americans, I have been surprised by the intensity of the Black-Lives-Matter protests that take place nightly in Portland, Oregon. Why Portland?

USA Today speculated yesterday that Oregon's racist past is fueling the city's protests.  As the newspaper pointed out, Oregon's territorial constitution, adopted in 1857, barred people of color from entering Oregon Territory.  And Oregon had a very active Ku Klux Klan during the early 1920s, as USA Today noted.

But I don't think Oregon's "dark history" of racism explains the violence in Portland's streets.  Portland is, after all, one of the most progressive cities in America. US News and World Report recently listed Portland as one of the nation's top ten best cities.

And no one can accuse Portland's politicians of being racist. The city's progressive political scene is so famous that the television series Portlandia lampooned it for eight seasons.

Nor is Portland torn by racial strife. Portland is a mostly white city in a primarily white state.  Only two percent of Oregon's population is Black, and only about one in twenty Portland residents is African American.  Compare that ratio to Baton Rouge, where I live. My city is 52 percent African American, and no one is rioting.

Watching the Portland protests night after night, I have been struck by the fact that most of the protesters are young, white people. I find myself wondering whether these enraged wokesters have college degrees, whether they have good jobs, and whether they have student-loan debt.

We know that millions of Americans are burdened by student loans that hinder them from getting married, buying homes, or saving for retirement.  And we know that a majority of these debtors are not paying down their loans.  Education Secretary Betsy DeVos admitted as much almost two years ago.

I'm guessing that a lot of the people who are protesting on Portland's streets have student-loan debt that is completely unmanageable. Although the demonstrators may have college degrees, those degrees did not lead to good jobs for many of them.

I am not questioning the sincerity of people who have taken to the streets of Portland this summer. I am sure most of them are genuinely disturbed by racism and economic injustice.

But I wonder: How many people who are throwing bricks and bottles at the police would stay in their homes at night, munch on popcorn and watch a Netflix movie if they believed they were financially secure, had a good job, and were not weighed down by student loans.

Portland protesters: most are young and white

"First they came for the Socialists, and I did not speak out." Reflections on Martin Niemöller, who stood up against the Nazis

First they came for the socialists, and I did not speak out—

     Because I was not a socialist.

Then they came for the trade unionists, and I did not speak out—

     Because I was not a trade unionist.

Then they came for the Jews, and I did not speak out—

     Because I was not a Jew.

Then they came for me—and there was no one left to speak for me.

Martin Niemöller

 (1892-1984)

Like most Americans, I am familiar with Pastor Martin Niemöller's famous quote, but I knew almost nothing about him until recently. I knew he was a Protestant pastor who opposed Adolph Hitler during the 1930s, but I did not realize that Niemöller spent seven years in a Nazi concentration camp.

As William Shirer noted in his memoirs, Niemöller would seem to be an unlikely person to stand up to the Nazis. Niemöller had been a decorated U-boat commander during the First World War. He was a fervent nationalist during the post-war years, and he welcomed the day when Hitler became the chancellor of the Reich in 1933.

But Niemöller slowly became disillusioned with Hitler, and he spoke out publicly against Nazism from his pulpit. At some point, Niemoller realized that Hitler meant to wipe out Christianity in Germany and replace it with the National Reich Church.

Indeed, Hitler's national church publicly repudiated the "strange and foreign" Christian religion. The Reich church openly acknowledged that it intended to place Mein Kampe on church altars instead of the Bible.

With great courage, Niemöllerdefended his Christian faith against Hitler's paganism. In 1937, he was arrested by the Gestapo and sent to Dachau.

Shirer, reflecting on the struggle between Hitler and German Christians during the 1930s, admitted that he had perhaps paid too much attention to it. After all, most Germans were not alarmed by what the Nazis were doing. "I should have realized," Shirer wrote, "that a people who had so lightly given up their political, cultural and economic freedom were not . . . going to die or even risk imprisonment to preserve freedom of worship."

Today, the United States is swirling in a witch's brew of cancel culture, Antifa, Black Lives Matter, and "wokedom." Elected politicians publicly denounce the police, and demonstrators feel free to throw bricks and bottles at police officers. Day after day, vandals posing as protesters destroy statues and monuments that memorialize America's heritage. Churches and businesses are being set afire, and almost no one is prosecuted.

If the United States had a free press and healthy universities, all this destructive rhetoric and criminal behavior would be thunderously denounced in the media, much as some newspapers denounced the Ku Klux Klan in the 1920s.

But America no longer has a free press. Instead, as Bari Weiss wrote this week in a letter to the New York Times," a new consensus has emerged in the press . . . that truth isn't a process of collective discovery, but an orthodoxy already known to an enlightened few whose job is to inform everyone else."

If our nation's universities were truly a marketplace of ideas, as the Supreme Court once described them, our intellectuals would speak up when a professor is bullied and even fired for failing to acquiesce to the destructive agenda of the cancel culture. But they are not speaking up.

For the most part, Americans are indifferent to the mass assault on traditional American values and our nation's democratic traditions. Our media and our universities are hell-bent on destroying American society, and few people dare to stand up to them.

We are like the Germans of the 1930s who stayed on the sidelines instead of opposing Hitler's thuggery. And like the Germans, we will eventually regret our cowardice.

Pastor Martin Niemöller spent seven years in a Nazi concentration camp.

Two Hispanic cops killed while responding to a domestic disturbance in the border town of McAllen, TX: Do Brown lives matter?

Last Saturday, two police officers were shot and killed in the Texas border town of McAllen. Officers Edelmiro Garza and Ismael Chavez were responding to a domestic disturbance call at a local residence. When they arrived, a man identified as Audon Ignacio Camarillo opened the door and shot both men, who had no time to draw their weapons. Camarillo took his own life later that day.

What does Black Lives Matter have to say about this tragedy? Good cops are dead cops, perhaps.

And how about those lunatics on the Minneapolis City Council--the people who want to dismantle the police department even as they buy personal security for themselves. Do they have any comments?

And the "Defund the Police" nut jobs--what is their take on this?  I suppose they will argue that the city of McAllen should have sent a "woke" social worker to deal with Mr. Camarillo instead of two cops.

Both slain officers were Hispanic, shot in a town that is overwhelmingly Latino (or Latinx). Does ethnicity affect the way anti-police yahoos think about this tragedy? If blue lives don't matter, can they at least acknowledge that Brown lives matter?

All over the United States, the police will tell you that the most dangerous scenario for them is a domestic violence call. The guys who beat their wives are unstable and often have guns. Alcohol is frequently a factor.

What is the best way to deal with these perilous situations--which happen every day all over the United States? Do we dispatch a SWAT team in an armored vehicle? Do we send an unarmed community caseworker? Or do we ask the police to deal with guys like Audon Ignacio Camarillo?

Right now, our society sends cops--both men and women--to deal with domestic abusers, who are human time bombs that can explode unexpectantly.  It's a dirty job, but someone has to do it.

Is it too much to ask, then, to say that blue lives matter? Is it too much to ask Americans to say thank you?

Not all white people live in a "place of privilege": Minneapolis City Council wants to dismantle the police department

Okie use' ta mean you was from Oklahoma.  Now it means you're a dirty son-of-a-bitch. Okie means you're scum.

John Steinbeck

The Grapes of Wrath 

Last month, the Minneapolis City Council voted unanimously to dismantle the municipal police force and replace it with an agency that will address crime more holistically. I take it that means more social workers and fewer guns.

Although the city council wants to deny police protection to the citizens of Minneapolis, some officials still want it for themselves. The city hired a private security firm to protect three council members at the cost of $4,500 a day. In other words, security for me but not for thee.

A CNN reporter asked Lisa Bender, president of the Minneapolis City Council, what people are supposed to do if their homes are being burglarized. "What if in the middle of the night my home is broken into," the reporter asked. "Who do I call?" 

Bender basically said the police aren't necessary to deal with a home invasion because if you're calling 911 to report a burglary, you're coming from a "place of privilege."  By privilege, I think Bender meant white privilege. 

If I follow her reasoning aright, Bender is basically arguing that white people don't deserve police protection from theft because they (or perhaps their ancestors) benefited unfairly from our society's structural racism.

But of course, that's bullshit. 

As far as I know, my family hasn't exploited anybody. My great grandfather on my father's side worked in a brick factory in England. Sometime in the 1880s, he immigrated to Canada with his wife and children and finally wound up in Kansas. No slaves on that side of my family.

My mother's people emigrated from Germany before the American Revolution. They settled in Pennsylvania, and several of my ancestors fought in George Washington's army. No slaves or racial exploitation on the German side of my family.

Even if you buy the tortured argument that my ancestors engaged in racial exploitation simply because they were white beneficiaries of a racist society, they certainly paid for that sin. Both sets of my grandparents lived in the Dust Bowl during the Great Depression and suffered greatly. 

Although my immediate ancestors did not migrate to California during the 1930s, many of their relatives and acquaintances did. Much like today's Mexican immigrants, Oklahomans uprooted themselves and headed to the Golden State in search of a better way of life.

And when they rolled up to the California border in their broken-down cars, the state police would not let them enter. These economic refugees were referred to as Okies--a term almost as derogatory as the N-word.

Think of that: Today's California politicians want to abolish all immigration laws and allow anyone to enter the country--even criminals. But in the 1930s, the Californians denied entrance to American citizens who just wanted to work and feed their families.

American history is tainted with systemic racism to be sure. Africans were enslaved in the South, Chinese workers were abused in the West, and the Irish were exploited in the East. And if you want to know how the Okies fared in 1930s California, view John Ford's great movie, The Grapes of Wrath. 

But today, in the second decade of the 21st century, we all deserve to be treated equally and with respect. And if someone breaks into our homes, don't we all deserve police protection?

Okies, keep out of California.

Three moves equal one fire: In these troubled times, shelter should be the first priority.

In the early 20th century, a lot of Americans in the rural South were tenant farmers; and they often moved from farm to farm to remain employed. "Three moves are as bad as a fire," was a common observation because the disruption, property loss, and cost of moving could be devastating. Three such moves caused as much damage as one fire.

According to the Aspen Institute, as reported by Steve Rhode, "One in five of the 110 million Americans who live in renter households are at risk of eviction by September." Most of these people live in urban areas, but the trauma and loss caused by eviction are just as devastating for them as for the Southern tenant farmers who lost their homes a hundred years ago.

Being evicted often means that parents have to pull their children out of school in midyear, which disrupts their kids' education. Renting another apartment usually requires the new tenant to come up with a security deposit, which may be impossible for people who have no savings and no credit cards. Moving to a new apartment also means having to open a new account for electricity and water, and often the utility companies require a deposit.

Three moves equal one fire in modern America. And people who can't scramble successfully from one rented apartment to another become homeless.

Our federal government has distributed massive infusions of cash into the American economy to offset the economic calamity caused by COVID-19. Still, a lot of that money went to people who don't need it. More than 600,000 businesses benefited from the Payroll Protection Program, including 1,400 investment advisors.

Poor people, on the other hand, have received scant relief.  The government mailed out  $1,200 one-time checks a few months ago, but that amount may not cover a month's rent.  Congress fattened people's unemployment checks by $600 a month--a significant benefit, to be sure, but this aid is temporary.

We already see the disruption in housing caused by the coronavirus. The number of adults living with their parents has spiked upward to 24.8 million, with the most significant increases among people in their early twenties.  Sixty percent of young Black men are living with their parents or grandparents.

Matthew Desmond called for radical changes in housing policy in his 2016 book titled Evicted: Poverty and Profit in the American City. He argues for universal housing vouchers to guarantee that every American would live in a home that is "decent, modest, and fairly priced."

In the short term, I don't see significant changes in national housing policy.  But this much seems clear. The federal government needs to devote a substantial amount of its coronavirus-relief money to making sure unemployed, and low-income Americans can stay in their rented homes.

Shanty housing during the Great Depression

Harvard University will go online this fall but will charge full tuition: $49,000 a year to take courses on your home computer

In response to the coronavirus pandemic, Harvard University announced that all undergraduate classes will be taught online this fall. Harvard will allow only 40 percent of its undergraduates to live on campus, including all of its first-year students.

As several people have pointed out, Harvard's decision to teach students online this fall will prompt other universities to reassess their own teaching plans for the fall semester. After all, if mighty Harvard, with its $40 billion endowment, has thrown in the towel regarding face-to-face instruction, then many other colleges will surely follow suit.

Who are we--mere mortals--to question Harvard? Nevertheless, I don't understand the point of bringing first-year students on campus if they are going to be huddled over computers in their dorm rooms when taking classes. Why not let Harvard students stay home with mom and dad if they are not going to see their professors?

Harvard and other elite universities will weather the pandemic if it doesn't stretch on too long.  People who get admitted to Harvard will gladly accept any inconvenience to put Harvard University on their resumes. And, for a short time at least, Harvard can get away with teaching its courses online while charging full tuition--$49,000 a year!

But experts predict that the second- and third-tier colleges will see fewer students this fall. And those students will likely take price into account when choosing their schools.  After all, if students are going to be denied a traditional college experience—student clubs, dorm life, opportunities to develop romantic relationships—why not enroll in the cheapest school?

Without a doubt, most universities will have a lot of empty dorm rooms on their hands this fall, which means a significant loss in revenue. Privately owned student-housing complexes will also have vacant units, and many of these complexes were built with borrowed money.  The savvy cats who expected to make tidy profits on so-called luxury student housing may have trouble making their mortgage payments.

The coronavirus pandemic makes a lot of recent university projects look silly. Louisiana State University, for example, spent $85 million on a student recreation center that includes a climbing wall and a "Lazy River" water feature shaped like the university's initials. It looked like a smart move at the time, and the center was financed with student fees.

Now the Lazy River no longer seems so attractive.  Instead, it just looks like a great place to contract COVID-19.

Wigglesworth Hall at Harvard: Be sure to bring your home computer