Changes to Private Student Loans & Bankruptcy Law

Legislation has been introduced to change bankruptcy law to treat private student loans like other consumer debt. On April 22, 2010 Congressman Steve Cohen chaired a hearing on the issue. Durbin first introduced this bill in 2007. Before bankruptcy law were changed 2005 only government issues student loans were protected in bankruptcy.

Senator Durbin
News release

CBS Money Watch’s
Student Borrowers Could Shed Loans With Proposed Law

The Chronicle of Higher Education
Lawmakers Introduce Bills to Change Student-Loan Bankruptcy Policy

Chairman Mille, Committee of Education and Labor
Time to Restore Fairness for College Loan Borrowers in Bankruptcy

National Association of Student Financial Aid Administrator
Private Student Loans to Be Discharged in Bankruptcy

Chairman Miller: Time to Restore Fairness for College Loan Borrowers in Bankruptcy

April 26, 2010 | Filed Under Student Loans | Comments Off

Student Debt Increasing Record Rates Due to Recession

Student loans are up about 50% since 2007 according to data from Equifax credit bureau according to Reuters. This will create negative long-term consequences for the housing and auto markets.

According to Dann Adams, president of Equifax’ U.S. Consumer Information Solutions

“We’ve never seen these levels of debt for student loans”

“This generation of students will be less able to buy their first home given their debt load”

Read the full story Recession spurs student lending in U.S

April 2, 2010 | Filed Under Student Loans | Leave a Comment