Senators Introduce Bipartisan Bill To Allow Student Loan Discharge In Bankruptcy

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Senators introduced a bipartisan bill to allow student loan discharge in bankruptcy Via ForbesAdvisor

Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations.The debate over student loan reform continues as lawmakers reconsider whether they can be discharged in bankruptcy.

Durbin, who has introduced and co-sponsored student loan reform bills in the past, noted that this would be the first bipartisan effort to reform the bankruptcy rules. The 10-year waiting period, according to the lawmakers and hearing witnesses, would reduce the “moral hazard” of borrowers taking on exorbitant amounts of student loan debt under the assumption that they’d never have to be repaid in full.

“We must look at the entire higher education ecosystem to solve these challenges— recommendations to modify the bankruptcy code would address only symptoms of the larger problem,” said Senator Chuck Grassley . “If we don’t correct the underlying causes, then we’re closing the barn door after the horse has gotten out.”

“If I could have discharged my loans in bankruptcy—as painful as filing was—it would ultimately have been a great relief,” Barta said. “I wouldn’t still be having sleepless nights worrying about how I am going to pay and what happens to my children, my husband and me if I cannot.”

 

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Advisor Americans🇺🇸want Socialist kind of answers in their Capitalistic country, it's evident.

Advisor After decades of not being allowed? What kind of CLOWN SHOW is this now after all those years or higher interest rates that were paid too? Just fix tuition costs at public universities, and no need to repay loans at all. No reason to SADDLE young people with debt they may not pay

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