Forty-four million Americans owe more than $1.5 trillion in student loan debt — a figure that trails only credit card debt as the highest in the nation.
In early May 2019, the Student Borrower Bankruptcy Relief Act of 2019 was introduced in Congress. It would eliminate a section of bankruptcy code that makes private and federal loans non-dischargeable unless the borrower can show the debt presents an “undue hardship.” If passed, the act would allow the loans to be treated like nearly all other forms of consumer debt. The bill has picked up support from Sens. Tammy Duckworth, D-Ill. and Elizabeth Warren, D-Mass., and U.S. Reps. Jerrold Nadler, D-N.Y., and John Katko, R-N.Y.
Senator Dick Durbin said the issue is one that crosses party boundaries. However, the most difficult test will be that the vast majority of the debt is owed to the federal government. Senator Durbin said he’s going to ask the judiciary chairman for a hearing on the bill because it’s time to come to grips with this reality. If he’s able to get the hearing, and then get the bill to the floor of the Senate, then Durbin believes there’s a chance to pass it.
There is no other way to put it….THIS IS HUGE. For millions of Americans who have no way to repay their student loans, it leaves a generation of people who will never be able to buy a house or otherwise build wealth. Without this monumental change, we may lose a whole generation. We at Vohwinkel Law will be watching this issue closely and we will update everyone once the bill progresses. Stay tuned…
To read the whole article on this, click on this link. Student loan debts could be wiped out through Durbin’s bankruptcy relief bill