Thursday
Apr222010
New Bill Could Give Bankrupt College Grads A Break
Thursday, April 22, 2010 at 12:59PM
By Laurel Brishel Prichard -University of New Mexico/ Talk Radio News Service
Some in the Senate are looking to give Americans struggling with bankruptcy a break on their student loans.
Under the current law students are not able to discharge their debt accumulated from private student loans during bankruptcy proceedings. New legislation, the Private Student Loan Bankruptcy Fairness Act of 2010, would take away the favored status of private loan companies and allow for the past due amounts to be forgiven, just like debt from credit cards.
Members of the Senate Judiciary Committee, who are looking into the issue, heard testimony Thursday from Valisha Cooks, a Los Angeles resident burdened by student loan payments.
“I don’t really have very many options,” said Cooks, who filed bankruptcy, due in part, she explained, to her large loan payments. “I continue to pay my loan, even though they are in default. I just can’t afford to pay what they are asking me to pay.”
The Fairness Act would make all loans, government or private, dischargeable during bankruptcy.
Some in the Senate are looking to give Americans struggling with bankruptcy a break on their student loans.
Under the current law students are not able to discharge their debt accumulated from private student loans during bankruptcy proceedings. New legislation, the Private Student Loan Bankruptcy Fairness Act of 2010, would take away the favored status of private loan companies and allow for the past due amounts to be forgiven, just like debt from credit cards.
Members of the Senate Judiciary Committee, who are looking into the issue, heard testimony Thursday from Valisha Cooks, a Los Angeles resident burdened by student loan payments.
“I don’t really have very many options,” said Cooks, who filed bankruptcy, due in part, she explained, to her large loan payments. “I continue to pay my loan, even though they are in default. I just can’t afford to pay what they are asking me to pay.”
The Fairness Act would make all loans, government or private, dischargeable during bankruptcy.
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