Senator Seeks Support for Bill to Allow Discharge of Private Student Loan Debt in Bankruptcy
An Illinois senator held a judiciary subcommittee hearing on Tuesday to consider his bill to allow the discharge of private student loan debt in bankruptcy.
Senator Majority Whip Richard Durbin has already held several town hall meetings on his bill, the Washington Post reports. The hearing yesterday “was the latest attempt to drum up support in the face of partisan gridlock on Capitol Hill,” the story says.
The Post cites statistics on the problem. More than a quarter of people with student loans have past-due balances, according to a study by the Federal Reserve Bank of New York. Government statistics from 2009 show about 15 percent of students who attended private colleges defaulted on their loans, about twice the rate for those who went to public schools.
In opening remarks, Durbin said too many students have been steered into loans they won’t be able to repay. “The student debt crisis in this country is largely ignored by Congress,” he said.
Prior coverage:
ABAJournal.com: Bankruptcy Lawyers Warn of Looming Student Loan ‘Debt Bomb’
