The Obama administration is calling on Congress to make it easier for some student loan borrowers to erase their debt through bankruptcy, as part of a package of proposals aimed at helping Americans who are struggling with loan payments.
In a report released Thursday by the U.S. Department of Education, administration officials outlined a range of recommendations for improving the nation’s student loan system, most of which require congressional action.
Perhaps the most significant proposal — and likely to be among the more contentious — is for Congress to ease the process for private student loan borrowers seeking to have their loans wiped out through bankruptcy. The administration is proposing that Congress roll back a 2005 law, enacted at the behest of private lenders, which set a high bar for when bankruptcy filers can discharge their private student loan debt.
Read more at Inside Higher Ed: https://www.insidehighered.com/news/2015/10/02/obama-administration-backs-easier-bankruptcy-path-private-student-loans
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