If the Fairness for Struggling Students Act becomes law, private student loans could be included in a personal bankruptcy.<\/p>\n
As student loan debt reaches record highs, many students are getting buried by their loan payments before making it into the job market. Tuition and the exploding growth of private for-profit schools has led to many students graduating with a $25,000 or greater debt to carry.<\/p>\n
Most government-backed loans are exempt from being discharged in a bankruptcy. This is true with government-guaranteed student loans, and the Struggling Students Act will not change the current laws related to federal student aid. However, the proposed legislation would allow individuals to discharge student loan debt from non-government and for-profit lenders.<\/p>\n
The ability to discharge student loan debt is nothing new. In fact, the inability to discharge for-profit education debt is only seven years old. In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act was passed and signed (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" If the Fairness for Struggling Students Act becomes law, private student loans could be included in a personal bankruptcy. As student loan debt reaches record highs, many students are getting buried by their loan payments before making it into the…<\/span><\/p>\n