Thursday, January 22, 2015
Congressman Delaney Introduces Student Loan Forgiveness During Bankruptcy Bill
Rep. John K. Delaney (D-Md.) introduced H.R. 449, the "Discharge Student Loans in Bankruptcy Act," to allow student loan debt to be treated like other forms of debt that can be discharged in bankruptcy proceedings, AccountingToday.com reported today.
According to a study by the Institute for College Access & Success, 69 percent of graduates from the class of 2013 graduated with student loan debt, owing an average of $28,400.
"Student loan debt is dragging down economic growth, keeping the American Dream out of reach for many and is a monthly strain for millions," said Delaney. "Right now, there is effectively a huge student loan loophole in bankruptcy law that's hurting real people. . . It doesn't make sense for students with heavy debt burdens to be worse than someone with credit card, auto loan debt or mortgage debt."