According to a report by the Huffington Post, student loans are the largest form of consumer debt in the United States, measuring $1 trillion nationally. Regardless of this fact, student loans aren’t eligible for discharge under current code. In January 2013, three senators sought to change student loan eligibility by sponsoring the Fairness for Struggling Students Act.
Since 1978, federal student loans haven’t been eligible for discharge, because the government wanted to protect the taxpayer money used to provide the loans. However, in 2005, private student loans also became ineligible for discharge, even though private loans often carry double-digit interest rates and have no income-based repayment options.
The Fairness for Struggling Students Act seeks to return provisions regarding private student loans back to their previous state before the changes in 2005. This means that privately issued student loans would once again be treated like other forms of dischargeable debt under a bankruptcy petition.
Are you struggling to repay your student loans? Would you like to learn about your debt relief options? Call Burr Law Office at (877) 891-1638 to find out about our affordable Milwaukee bankruptcy services.