Lawmakers are introducing a bill that would allow people with student loan debt the option of making bankruptcy relief available.
The bicameral Student Borrower Bankruptcy Relief Act of 2019 was introduced by Senators Dick Durbin (D-Ill.) and Elizabeth Warren (D-Mass.), Representatives John Katko (R-N.Y.) and Joe Neguse (D-Colo.), and House Judiciary Committee Chairman Jerrold Nadler (D-N.Y.) on May 9.
Most forms of debt, like credit card and medical debt, can be discharged through the bankruptcy process, but student loans cannot, a press release noted. Under the bill, student loans would be treated like all types of consumer and medical debt. It would also eliminate “the section of the bankruptcy code that makes private and federal student loans nondischargeable,” according to the press release.
“Americans across the nation are facing crushing student loan debt that is preventing them from purchasing homes and living the true American dream. We must…
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