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Proposed Legislation for Bankruptcy Option for Student Loans

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There may be hope for individuals who have student loans.   At this time, student loans are not dischargeable .

Federal law currently prohibits, except in rare cases, private or federal student loans from being discharged in bankruptcy.

However, on June 25, 2014, Senate Education Committee Chair Tom Harkin (D-Iowa) introduced legislation that would allow a small portion of Americans’ student loans to be discharged through bankruptcy Court.

Consumer advocates are behind this legislation as well as the banking industry.

The bill’s prospects for passage this year are not looking good given the midterm elections and broad partisan disputes over higher-education policies.  – Still being considered….