CLLA Update-Democratic Senators Introduce Bill to Give Bankruptcy Relief for Private Student Loans
Sharon Edmondson, Washington Legislative Team Member | April 08, 2015
Senator Durbin (D-Ill) and a group of 12 co-sponsors introduced a bill, “Fairness For Struggling Students Act of 2015 (S. 729), on March 12 that will help address the student debt crisis by treating privately issued student loans in bankruptcy the same as other types of private unsecured debt. The bill would reverse the changes made in 2005 to the Bankruptcy Code so that privately held student loans will once again be dischargeable in bankruptcy.
The bill was referred to the Judiciary Committee, but no hearing has been scheduled. In the 113th Congress, Rep Cohen (D-TN) introduced the “Private Student Loan Bankruptcy Fairness Act of 2013 (HR 532), which would have allowed discharge of private student loans.