Petrini vs. State of Alaska, Alaska Post Secondary Education Case No: 89-00042

Mr. Petrini filed this adversary proceeding to establish that he was entitled to a hardship discharge of his student loan under 11 USC § 523(a)(8).

The student loan first became due on November 1, 1984, within five years of the date of the petition. Mr. Petrini has a wife and three children, ages 8 years, 4 years, and 10 months. He alleges his wife suffers from arthritis. He is living on welfare and AFDC payments.

The student loan was incurred to provide training as a welder to Petrini. He has a varied work history. He had a military occupation as a jet mechanic. He has some experience in the construction trades, such as carpentry. He has experience in food serviced. Petrini says he is caught in a no-win situation. Jobs are not plentiful, and accepting one will detract from his monthly public benefits. That is, he will not make enough to even compensate for the loss of benefits. He has worked very little in the last three years. Nonetheless, he is only 37 years old and his health is excellent.

The State indicates his student loan payments are now $56.86 per month, and it is willing to restructure them if called for. The State cites a history of Petrini failing to keep it advised of his whereabouts and a spotty repayment history despite generous extensions and grace periods. As of January 22, 1991, the amount owed on the loan was a principal balance of $3,477.38 plus interest at 5% per year. Affidavit of Patty Fouse (Docket No. 15 filed January 27, 1992).

Date of Decision: 2/24/92

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