Round Five: Restoring Bankruptcy Protection Rights To Student Loan Borrowers (HR 432)
Last Wednesday, HR 432, which would allow private loans to be discharged in bankruptcy, was introduced by Congressmen Danny Davis (D-Ill.) and Steve Cohen (D-Tenn.). This is the fifth time that that this type of legislation has been presented for passage.
As most of my readers are aware, I am in full favor in restoring bankruptcy protection rights to borrowers with private student loans. That goes with federal loans, too. However, there are valid concerns about potentially negative consequences of a bill like this passing - this is always the case when legislation is passed. The outcome can result in unforeseen problems. The most significant concern I have is the following: if the bill passes, Congress and higher education policy makers might pat themselves on and declare, "The problem is solved, so there is nothing to worry about now." That is not what we want our dear Congressmen, Congresswomen, and policy makers to conclude! Far from it.
And, as I've mentioned previously, the lenders, who are culpable - just as the U.S. government is - in creating
As most of my readers are aware, I am in full favor in restoring bankruptcy protection rights to borrowers with private student loans. That goes with federal loans, too. However, there are valid concerns about potentially negative consequences of a bill like this passing - this is always the case when legislation is passed. The outcome can result in unforeseen problems. The most significant concern I have is the following: if the bill passes, Congress and higher education policy makers might pat themselves on and declare, "The problem is solved, so there is nothing to worry about now." That is not what we want our dear Congressmen, Congresswomen, and policy makers to conclude! Far from it.
And, as I've mentioned previously, the lenders, who are culpable - just as the U.S. government is - in creating
