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BLACK v. EDUCATIONAL CREDIT MANAGEMENT CORP.

No. 05-1102.

459 F.3d 796 (2006)

Joseph M. BLACK, Jr., Trustee, Plaintiff-Appellant, v. EDUCATIONAL CREDIT MANAGEMENT CORPORATION and Margaret Spellings, Secretary of Education, Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided August 16, 2006.

Attorney(s) appearing for the Case

Joseph M. Black (argued), Rothring, Lambring & Black, David C. Ollis, Seymour, IN, for Trustee-Appellant.

John S. Egan, Frost, Brown & Todd, Louisville, KY, Daniel Fisher (argued), Educational Credit Management Corporation, St. Paul, MN, for Appellee, Educational Credit Management Corporation

Tara Grove (argued), Department of Justice Civil Division, Appellate Section, Washington, DC, for Appellee, Margaret Spellings.

Lloyd Koehler, Pettay & Associates, New Albany, IN, for Debtor.

Before RIPPLE, WOOD, and WILLIAMS, Circuit Judges.

WOOD, Circuit Judge.

The central issue in this case is whether a regulation promulgated by the Secretary of Education that allows the assessment of collection costs on defaulted student loans to be done on a formulaic basis was a permissible implementation of the governing statute, 20 U.S.C. § 1091a. The district court upheld the regulation, 34 C.F.R. § 682.410(b)(2), over the objection of a bankruptcy trustee,...

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