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The article discusses the concept of tuition claw back, an emerging trend in the U.S. that may be employed by bankruptcy trustees to recover college-tuition payments. The concept is considered as alarming and worthy of serious consideration if one is contemplating bankruptcy and has paid college tuition for a child in the past few years. A trustee in Massachusetts may avoid and recover transfers going back four years from the date of the bankruptcy filing under its fraudulent-transfer laws.

The article presents information on various issues that relates to educational loan system in the U.S. It highlights high amount of debts levied on the student with higher interest rates on educational loans for various courses which on completion provides low paying jobs. It also highlights deformities which lie in repayment plans for federal student loans and educational loan scheme implemented by the U.S Department of Education.

The article explains that under the U.S. Bankruptcy Code, debtors or trustees can recover preferential transfer payment if they can prove that the payment was made to the creditor on old debt while the debtor was insolvent.